Market Vectors today launched its newest exchange traded fund (ETF), designed to give investors exposure to an index of bonds that are issued in the local currency of emerging markets.
The Market Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC) is the first U.S.-listed exchange-traded fund (ETF) designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments.
The ETF tracks the price and yield performance of J.P. Morgan Government Bond Index-Emerging Markets Global Core Index. The Index currently tracks a selection of bonds issued in local currencies by 13 emerging market countries representing Latin America, Eastern Europe, Africa, and Asia: Brazil, Colombia, Egypt, Hungary, Indonesia, Malaysia, Mexico, Peru, Poland, Russia, South Africa, Thailand and Turkey. [A New ETF With an Active Twist.]
WisdomTree has filed with The Securities and Exchange Commission (SEC) to offer a managed futures ETF designed to deliver returns in different market scenarios. The WisdomTree Managed Futures Strategy Fund will seek to benefit in rising or falling markets based on the “moving average” price changes of commodities, currencies and fixed-income futures contracts over a recent period, says Olivier Ludwig for Index Universe.
Also in the planning stages is the RiverFront Strategic Income Fund which is from ALPS Advisors. The idea of the fund is to offer an actively managed global fixed-income fund that could own debt securities comprising broad ranges of maturities and credit quality. Cinthia Murphy for Index Universe explains that the fund, which will be ALPS’ first fixed-income strategy, will come with a net expense ratio of 0.24% after a fee waiver.
Grail Advisors, a San Francisco investment firm specializing in active ETFs, will serve as the fund’s adviser, and RiverFront Investment Group will be subadviser, according to the filing. This is in-line with the latest trend in the ETF industry of providers teaming up with financial backers to bring innovative products to the market.
For more stories about new ETFs, visit our new ETFs category.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.