BlackRock‘s exchange traded fund branch iShares will reportedly launch a new corporate bond ETF that focuses on emerging market companies Thursday. More ETFs are opening up emerging market debt as a new asset class for investors.
According to the fund prospectus, the iShares Emerging Markets Corporate Bond Fund (BATS: CEMB) will try to reflect the performance of the Morningstar Emerging markets Corporate Bond Index, which follows U.S. dollar-denominated emerging market corporate bonds. Component securities are rebalanced monthly and country weightings are rebalanced annually. CEMB has an expense ratio of 0.60%.
BlackRock will list the new ETF on Thursday, Benzinga reports.
Emerging market countries will include those from Latin Americas, Eastern Europea, Middle East, Africa and Asia (excluding Japan). As of March 31, 2012, Index issuers included those located in Brazil, Chile, China, Colombia, Hong Kong, India, Indonesia, Israel, Jamaica, Kazakhstan, Kuwait, Malaysia, Mexico, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, Turkey, Ukraine, United Arab Emirates and Venezuela.
Component sectors include energy, financial and industrial companies.