The dim sum bond ETFs provide exposure to international issuers. For instance, DSUM has a 44.0% weight in China, 12.4% in British Virgin Islands, 10.1% in Caymen Islands, 6.8% in Hong Kong, 4.6% in Singapore, 4.0% in France, 3.9% in Luxemberg, 3.9% in U.K. 1.7% in the U.S. and 1.6% in the UAE. CHLC includes country exposure to China 50.8%, Germany 18.8%, Malaysia 3.2%, U.K. 3.2%, U.s. 3.2% and Singapore 3.1%.
PowerShares also points out that dim sum bonds have one of the best yield-to-risk profiles as they offer a high yield per unit of duration relative to other segments of the bond market. Specifically, DSUM has an effective duration of 2.43 years and CHLC has an effective duration of 1.84 years.
Additionally, the dim sum funds include high quality bonds, with investment grade debt accounting for about half of the overall portfolio in both ETFs.
The PowerShares bond ETF comes with a 0.45% expense ratio, whereas the Market Vectors fund has a 0.39% expense ratio.
For more information on the bond market, visit our bond ETFs category.