A stunning rally in Venezuelan assets after US forces removed president Nicolas Maduro from power has showcased how unprepared the local market is to absorb the new wave of attention.
Brokerages have been getting an increasing number of calls from foreign clients asking how to get exposure, convinced that a potential political shift will boost Venezuelan assets, according to local traders who asked not to be identified due to security concerns. But accessing the market isn’t so simple.
Apart from being shallow — with a total market capitalization of $22.5 billion at the official exchange rate and fewer than 40 listed companies — local stocks also face regulatory hurdles and currency concerns that hinder both local and foreign investment.
Venezuela is isolated from the global financial system, so even exchanging dollars into bolivars isn’t straightforward. Plus, international investors need to register with the local tax agency, a sometimes complicated and bureaucratic task.
“If you wanted to try and get access to Venezuelan assets, I’m sure you could find a way, but it’s too small,” said Todd Sohn, senior ETF and technical strategist at Strategas in New York. Still, “there is a play to bring Venezuela to everyday investors.”
On Monday, a filing landed at the Securities and Exchange Commission for an ETF tracking an index composed of Venezuela-based companies. The fund wouldn’t exclusively hold Caracas-listed equities, but also include companies with significant exposure to the Latin American nation.
Venezuela’s local market, a booming force decades ago, has turned notoriously small after years of currency controls, hyperinflation and economic shrinkage under the socialist policies of late president Hugo Chavez and his successor Maduro. Despite a nascent turnaround in recent years, sanctions and legal barriers have hindered progress — banks and insurance companies are restricted from participating, for example, which limits liquidity.
Even with this week’s surge in interest, trading volumes on stocks and local bonds totaled just a little over $200,000 at the parallel exchange rate so far in 2026, according to one of the people.
The country’s assets have rallied over the past few months as Trump increased pressure on Maduro, culminating in his capture over the weekend to face drug-related charges in the US.
The strongman’s removal sparked a rally in Venezuela’s dollar bonds, which jumped by the most since US sanctions on secondary trading were lifted in 2023. While gains have eased since, the notes were still trading near their highest levels in more than eight years on the hopes that the political change would trigger a debt restructuring process.
The Caracas stock index, meanwhile, has surged about 124% in dollar terms at the official exchange rate this week, according to data compiled by Bloomberg. Monday’s jump triggered an automatic halt in trading of around 13 shares, one of the people said — the exchange stops trading if daily moves exceed 20%.
Part of that rally also comes as the bolivar sinks amid political upheaval. The currency has weakened more than 20% this week in the parallel market, with the gap between the official and unofficial exchange rates widening to record.
Brokers have been looking for alternative ways to offer clients exposure, including securities backed by real estate assets and a variety of fixed income instruments, even in dollars, the people said. Another option is to invest in companies that have exposure to Venezuela, such as energy firms. However, the list is small.
“Equity exposure to Venezuela remains limited,” JPMorgan equity strategists led by Diego Celedon wrote on Monday. “In 2013 we identified 12 companies with direct operations in Venezuela; half of these have since exited the country or been delisted.”
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