VanEck Lowers Fees on Emerging Market Bond ETFs

VanEck, the eighth-largest U.S. issuer of exchange traded funds, has lowered the annual fees on two of its emerging markets bond ETFs.

Last week, New York-based VanEck lowered the annual expense ratio on the VanEck Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC) to 0.30% per year, or $30 on a $10,000 investment, from 0.42%.

“EMLC is the largest and most liquid U.S. listed ETF providing access to emerging markets local currency bonds. It seeks to track the J.P. Morgan GBI-EMG Core Index (GBIEMCOR), which is comprised of bonds issued by emerging markets governments and denominated in the local currency of the issuer,” according to a statement from the issuer.

The $4.6 billion EMLC turns eight years old next month. The ETF holds nearly 280 bonds and has a 30-day SEC yield of 2.13%. Brazil, Indonesia, Mexico and Poland are EMLC’s top four country exposures combining for over 36% of the fund’s weight.

Another Fee Cut

VanEck also revealed a lower fee on the VanEck Vectors Emerging Markets Aggregate Bond ETF (NYSEArca: EMAG).