Investing in International Stock Markets from Chile

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 29, 2017 10:22 pm

papageno wrote:
Wed Nov 29, 2017 9:46 pm
A year ago, almost to the day (tomorrow) you mentioned Schwab International. Any further thoughts along that line?
If I understand correctly, they trade only US ETFs and this is a ticket for me to the US tax hell and 30% on dividends until the tax treaty is signed.

Meanwhile, I'm trying to start with International Brokers but they are weird: we opened a joint account but they say that we need also use a joint bank account to send ACHs – I can't use my regular bank account. :\ I also don't like to be dependent on the US broker with a snail support, so probably spending a bit more to trade via Chilean broker is a better option.
at46 wrote:
Wed Nov 29, 2017 10:15 pm
have you looked at these guys? https://www.boom.com/en/trading_tools/s ... tools/etf/
No, but if I'm going with some barely known broker – it will be a Chilean one.

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Space Cat
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Wed Nov 29, 2017 11:18 pm

Wow, just look at these liberal requirements of Renta4! Too good to be true:
– cuenta corriente / ahorro / vista (CuentaRUT should work?)
– national ID
– RUT
– you can be a foreigner

The bad part is 15 euro fee for trading internationally ($1 at Interactive Brokers) but no account fee. Ok, I'll bite and report the results.

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Thu Nov 30, 2017 10:54 am

So, I registered yesterday night and played around the dashboard – a bit clunky but fine. The exchange rate to USD/EUR is the market one but maybe I will find some hidden fees for buying/selling currencies.

Unfortunately, no ETFs I wanted because they are not connected to the London stock exchange. But there are US, Paris, Frankfurt, Lisbon, etc. And it seems there are no Chilean ETF-like mutual funds – only shares.

Got the account approved today, before I even woke up.

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Re: Investing in International Stock Markets from Chile

Post by admin » Thu Nov 30, 2017 11:33 am

Here is about the only native ETF for the entire IPSA, that should be available at all brokers: CFMITNIPSA

And it happens to be down with the recent election jitters:
http://www.bolsadesantiago.com/mercado/ ... CFMITNIPSA

It has a bit of tracking error, that seems to be a wash. Seems to not go up as big as the IPSA moves every day, but on the other hand does not decline as fast either.

Check their listing of stocks, to see if they list the foreign ETF's like ishares and so on. Some brokers in Chile do offer them, because they are cross-listed on the Chilean stock market. I have however run in to a rather baffling bunch of conditions to buy them. Some wanted me to exchange to dollars, then call in the trade, to buy them in CLP on the stock market (read: 'we don't know what an ETF is'). Some don't list them at all.

One broker (one of the largest in the country), was surprised to find out they were even listed when I asked (instills great confidence when your broker knows less about the local stock market then you do). They have been listed for a long time. They would allow me to buy them, in the same manner as Chilean stock, but I never got around to trying to trade them from inside Chile.
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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Thu Nov 30, 2017 12:04 pm

Yes, I was looking for this one (took a note from your message a year ago or more) and wasn't able to find it. According to this page, it's available only via BCI, Itaú, and Larrain.

Bolsa de Santiago has iShares listed but they are not actually present, for example: ITOT, ITOT CL. Actually no foreign ETFs are available if you search for the "ETFs Extranjeros" option here (zero volumes).

Renta4 lists both Vanguard and iShares but in the US:
renta4.png

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Thu Nov 30, 2017 1:25 pm

MBI replied to my questions but did not verify the account yet (I applied yesterday evening too). They explained that an account must have only one RUT – either a person or a company.

Well, making a whole company for sharing family assets is an overkill at this point. I believe it would be easier to open two accounts and write a will in advance.

They also said that cuenta vista is fine despite the "cuenta corriente" field in their registration form, i.e. it's possible to use CuentaRUT which is basically a branded cuenta vista.

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Tue Dec 05, 2017 1:50 am

Finally got the account approved at Interactive Brokers. They start processing the application much faster after receiving initial funding. I don't have utility or bank bills in my name, so they asked for a signed letter from my landlord that the rent contract is still valid.

Meanwhile, I found international Chilean ETF by iShares – ECH. Maybe I missed it last week but now I see it at Bolsa de Santiago too. Any opinion on this vs. CFMITNIPSA?

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Re: Investing in International Stock Markets from Chile

Post by admin » Tue Dec 05, 2017 3:06 am

Totaly diffrent animals.

Ishares is the local adr for ishares that trade for instance the global emerging matket fund, developed market fund, etc jist like the states.

The ipsa now is the only etf in chile, as far as i know, that is just the ipsa 40 of chile. The only other way is via a traditional mutiel fund. I dont like the chilean mutuel funds due to the 'hide and go seek' with their fees, what they invedt in, their status. It is like investing in a a mutuel fund, in 1975. Front loads. Back loads. Side loads.
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Re: Investing in International Stock Markets from Chile

Post by Rhodolite » Tue Dec 05, 2017 9:29 am

Space Cat, I noticed this: "...I believe it would be easier to open two accounts and write a will in advance." in your 30 Nov. post. Don't forget that in Chilelandia your options for bequeathing assets are restricted.

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Re: Investing in International Stock Markets from Chile

Post by Space Cat » Tue Dec 05, 2017 10:39 am

admin wrote:
Tue Dec 05, 2017 3:06 am
Totaly diffrent animals.

Ishares is the local adr for ishares that trade for instance the global emerging matket fund, developed market fund, etc jist like the states.

The ipsa now is the only etf in chile, as far as i know, that is just the ipsa 40 of chile. The only other way is via a traditional mutiel fund. I dont like the chilean mutuel funds due to the 'hide and go seek' with their fees, what they invedt in, their status. It is like investing in a a mutuel fund, in 1975. Front loads. Back loads. Side loads.
Other iShares – yes, but this ECH is made exclusively of Chilean companies –  Falabella, COPEC, CENCOSUD, LATAM etc.:
https://www.blackrock.com/cl/productos/ ... f#holdings

Or maybe I'm missing something (I'm an investment noob after all).

UPD: it's US-domiciled, so I guess there's the same non-resident dividend tax despite companies being all Chilean. BlackRock has Ireland-domiciled iShares for Brazil and Mexico but no Chile so far.
Rhodolite wrote:
Tue Dec 05, 2017 9:29 am
Space Cat, I noticed this: "...I believe it would be easier to open two accounts and write a will in advance." in your 30 Nov. post. Don't forget that in Chilelandia your options for bequeathing assets are restricted.
Thanks, I read it before – no problem with this, looks quite fair.

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