PIMCO, a global investment management firm and prominent bond fund provider, recently introduced the first of three new exchange traded funds that track country-specific government debt.
On Oct. 31, PIMCO launched the PIMCO Australia Bond Index Fund (NYSEArca: AUD). The company plans to list the PIMCO Canada Bond Index Fund (NYSEArca: CAD) and PIMCO Germany Bond Index Fund (NYSEArca: BUND) later on. [Vanguard Readies International Bond Funds, ETFs]
According to a PIMCO press release, the funds will help investors gain exposure to countries with solid balance sheets and debt dynamics that will hold up in periods of slower global growth.
Australia is a large exporter commodities and is a key trading partner with many emerging market economies in Asia. Additionally, the Australian dollar is one of the higher-yielding currencies in the world. [Investors Get More ETF Options for Emerging Market Bonds]
Canada is also a large exporter of commodities, including agricultural products, raw materials and oil. The country has a historically low debt burden, an expanding economy and sound fiscal policy.