Emerging Global Advisors, the New York-based exchange traded funds issuer known for its lineup of emerging markets funds, has teamed with Los Angeles-based asset management firm TCW to introduce three new emerging markets bond funds today.
The new funds are the EGShares TCW EM Short Term Investment Grade Bond ETF (NYSEArca: SEMF), the EGShares TCW Intermediate Investment Grade Bond ETF (NYSEArca: IEMF) and the EGShares TCW EM Long Term Investment Grade Bond ETF (NYSEArca: LEMF). The trio is the ETF industry’s first to provide duration-defined exposure to dollar-denominated developing world corporate and sovereign debt, according to a statement issued by the firms.
SEMF tracks the J.P. Morgan Custom EM Short Term Investment Grade Bond Index, which is comprised of dollar-denominated emerging markets bonds with maturities ranging from one year to three years. IEMF tracks a J.P. Morgan index that is built on dollar-denominated emerging markets debt with maturities ranging from four to seven years.
LEMF is linked to the J.P. Morgan Custom EM Long Term Investment Grade Bond Index. Bonds in that index are also dollar-denominated and feature maturities of eight to 12 years.
The partnership with EGShares marks TCW’s first foray into ETFs. TCW is majority-owned by the Carlyle Group. All three of the new ETFs are passively manged. [EGShares, TCW Partner on EM Bond ETFs]
The bond funds are the first new products to be introduced by EGShares this year, but the firm brought a few new ETFs to market last year, including the EGShares EM Dividend High Income ETF (NYSEArca: EMHD) and the EGShares Emerging Markets Dividend Growth ETF (NYSEArca: EMDG). The firm’s largest ETF is the EGShares Emerging Markets Consumer ETF (NYSEArca: ECON).
ETF Trends editorial team contributed to this article.