The emerging market local debt portfolio follows a fundamental indexing methodology that selects country’s based on GDP, population land area and energy use. Current country exposure includes Brazil, Colombia, Chile, the Czech Republic, Hungary, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, South Africa, Thailand and Turkey. Moreover, the bonds have at least one year to maturity and a debt rating of “C.”
The PowerShares emerging market bond fund will be competing with other local currency denominated emerging market debt funds like the WisdomTree Emerging Markets Local Debt Fund ETF (NYSEArca: ELD), which yields 3.61%; Market Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC), which yields 4.73%; SPDR Barclays Capital Emerging Markets Local Bond ETF (NYSEArca: EBND), which yields 1.23%; and iShares Emerging Markets Local Currency Bond Fund ETF (NYSEArca: LEMB), which yields 3.76%.
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.