Existing ETFs tracking the emerging market high-yield bond market tend to focus on sovereign debt, said Edward Lopez, marketing director at Market Vectors. HYEM focuses on U.S. dollar-denominated corporate debt, which accounts for over 10% of the global high-yield corporate bond market.
“Through this fund, investors now have a simple, transparent way to add targeted exposure to this segment of the high-yield market,” Lopez said in a press release.
Other emerging market bond ETFs launched this year include the iShares Emerging Markets High Yield Bond Fund (BATS: EMHY) and the WisdomTree Emerging Markets Corporate Bond Fund (NasdaqGM: EMCB). [High-Yield Bond Investors Have More ETF Options]
For more information on high-yield fixed-income assets, visit our high-yield bonds category.
Max Chen contributed to this article.