CEDEARs

What is a CEDEAR?

An Argentine Depositary Receipt (CEDEAR) is a financial instrument issued in Argentina that allows investors to access foreign assets that are not listed on the local market.


Investing in CEDEARs mirrors investing in the foreign asset because each CEDEAR represents a specific number of those shares held in custody. The conversion ratio of a CEDEAR indicates how many CEDEARs are needed to represent one underlying foreign share in its primary market.

How to trade CEDEARs

1. Select an authorized local brokerage firm (ALYC).
2. Open an account with your chosen ALYC.
3. Fund your account. . You can transfer funds from a bank account or a virtual wallet.
4. Place your order with the ALYC, specifying the instrument, price and quantity you want to buy.
5. The ALYC executes the trade on your behalf.
6. The time it takes for the securities to be credited to your account depends on the chosen settlement cycle. With Cash Settlement (Immediate), the trade settles on the same day. For a 24-hour settlement, the securities will be credited on the next business day.

Advantages of CEDEARS

• Investors can invest in shares of companies like Apple, Google, Facebook, and Netflix without needing to open accounts with foreign banks or intermediaries.
• CEDEARs are traded on BYMA and held in custody at Caja de Valores, Argentina's central securities depository, under the same conditions as Argentine-listed stocks.
• The profit from the investment is exempt from income tax in Argentina.
• CEDEARs diversify investment portfolios, provide exchange rate hedging, and mitigate local risk.
• Investors can always convert their CEDEARs, according to the conversion ratio, to receive the underlying shares of the foreign company.
• The conversion ratio of CEDEARs allows for a low initial investment in either pesos or dollars.
• Investors can benefit from both the appreciation of the underlying company's stock price and any dividends the company distributes.
• Dividends are paid in dollars, even if the initial investment was made in pesos.

CEDEARS on ETFs

These are CEDEARs that represent investment funds, known as ETFs (Exchange Traded Funds), listed on international markets.


ETFs are designed to replicate the performance of specific indices, sectors or even regions. A significant advantage is that they can be traded on a stock exchange, just like individual instruments. By investing in a single CEDEAR on ETF, you gain exposure to all the assets that make up the fund, easily achieving a high degree of diversification.

Just like other CEDEARs, CEDEARs on ETFs can be traded in pesos or dollars and their conversion ratio allows for a low minimum investment, enabling investors to buy fractions of an ETF.

There are 9 ETF CEDEARs on ETFs available for trading on BYMA. Learn about them here. ‍