There could soon be an ETF for investors seeking exposure to Venezuela, which is seeing its stock market soar since the ouster of former President Nicolás Maduro this week. The Teucrium Venezuela Exposure ETF, whose application was filed with the Securities and Exchange Commission just days after Maduro’s rendition to the U.S., aims to track the total return of companies with significant exposure to the nation of some 30 million. The proposed ETF comes at an opportune time. Venezuelan stocks have jumped since last weekend’s seizure of Maduro, with the Venezuela IBC Index more than doubling this week. It last stood above 4,400, or some 2,300 points (110%) above where it ended last year, at 2,082. Wall Street has shunned Venezuela for a long time. After years of rampant spending, falling oil prices, and heavy U.S. sanctions, the Latin American country defaulted on its debt in 2017 after failing to make payments on overseas bonds issued by both the government and its state-owned oil producer, PDVSA. Fidelity Investments and T. Rowe Price are reportedly significant holders of defaulted bonds. The apparently stronger alignment of Venezuela’s government with the U.S. has revived investor interest in the country, with many hoping there’s value to be unlocked by a potential restructuring of the nation’s sovereign debt , or by investments in the country’s massive oil reserves. Teucrium, a Burlington, Vermont-based firm usually known for single commodity agricultural ETFs focused on wheat , soybeans , corn and sugar , said in its filing that friction between the U.S. and Venezuela is an ongoing risk factor for any investments in the country. “The U.S. could also institute broader sanctions on Venezuela,” the filing read. “These sanctions, or even the threat of further sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of the bolivar or other adverse consequences to the Venezuelan economy,” Teucrium said, referring to the Venezuelan currency.
