“Featuring potentially higher yields than most investment grade bonds and potentially less credit risk than most high yield issues, demand for crossover bonds is growing among financial advisors and investors during this extended low-yield environment,” James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors, said in a press release.
EMCD tries to reflect the performance of the BofA Merrill Lynch Emerging Markets Diversified Corporate Index, which is comprised of U.S. dollar-denominated emerging market corporate senior and secured debt. The fund has an expense ratio of 0.50%.
As of May 31, the Emerging Markets Corporate Bond ETF has 454 holdings, with top components like Petroleos De Ven, Petrobras Intl, Petronas Cap, Petroleos Mexica and Vale Overseas. Country allocations include Brazil 19.7%, Russia 15.2%, Mexico 11.0%, UAE 6.6%, South Korea 6.0%, Hong Kong 5.4%, China 4.8%, India and Qatar 3.3%.
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.