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).
“EMAG is the only U.S. listed ETF that provides comprehensive exposure to the full emerging markets debt opportunity set. It seeks to track the MVIS EM Aggregate Bond Index (MVEMAG), which is comprised of emerging market sovereign bonds and corporate bonds denominated in U.S. dollars, euros, or local emerging markets currencies, and includes both investment grade and below investment grade rated securities,” according to VanEck.
EMAG’s new annual fee is 0.35%, or $35 on a $10,000 investment, down from 0.49%.
EMAG, which recently turned seven years old, holds nearly 170 bonds and has a 30-day SEC yield of 4.58%. The ETF’s effective duration is 4.69 years. Nearly two-thirds of EMAG’s holdings are rated A or BBB.
For more information on the fixed-income market, visit our bond ETFs category.