The World Bank has developed the issuer-driven exchange traded fund (ID ETF) to help support local currency bond markets through increased liquidity and transparency. Having seen success in Brazil, these innovative products are being developed in other emerging and developing market economies. To develop ID ETFs requires close work between the World Bank and local governments, notably their treasuries, to determine the right size of the launch and any country-specific aspects.
Anderson Caputo Silva, practice manager for long-term finance at the World Bank, explains the background, key innovations and qualities of the instruments that will drive further growth in ID ETFs across Latin America and in other economies.
