The Market Vectors LatAm Aggregate Bond ETF (NYSEArca: BONO), an ETF perhaps best known for its ticker also being the name of U2’s lead singer, will undergo some changes. Those changes include dropping “BONO” as its ticker.
“On or about December 10, 2013, BONO will change its ticker, fund name, and investment strategy, and will be renamed the Market Vectors Emerging Markets Aggregate Bond ETF (NYSEArca: EMAG),” according to a statement released by Market Vectors.
The index change is noteworthy because the soon-to-be-former BONO will move to an index that provides investors exposure to dollar- and euro-denominated emerging markets corporates, dollar- and euro-denominated sovereigns as well as local currency sovereigns and corporates. Currently, BONO tracks the Bank of America Merrill Lynch Broad Latin America Bond Index, “is comprised of external and local currency Latin American sovereign debt and the external debt of non-sovereign Latin American issuers denominated in USD or Euros,” according to Market Vectors.
Dollar-denominated holdings comprise 59.5% of the ETF’s current lineup with Brazil and Mexico combining for nearly two-thirds of the fund’s country weight. The ETF’s net expense ratio of 0.49% will not be altered as a result of the upcoming changes.
“By changing BONO to EMAG, we are seeking to introduce an efficient means for investors to gain access to a broad exposure of emerging markets bonds in a single ETF,” said Ed Lopez, Marketing Director with Market Vectors ETFs, in the statement.