Alternative Investments: Global X Launches Active ETF Focused on EM Bonds

Emerging market (EM) debt represents more than 20% of the global bond market.

ETF-provider Global X announced Wednesday its launch of the Global X Emerging Markets Bond ETF (NYSEAMERICAN: EMBD). It is an actively managed ETF focused on emerging market debt, and does not track an index. Yields on emerging market debt are expected to be more lucrative than traditional bond yields. (ETF TRENDS)

Global X Emerging Markets Bond ETF (NYSEAMERICAN: EMBD)

At $26 trillion, emerging market debt is now a fifth of the total global bond market. The fund will invest in emerging market debt denominated in either US dollars or in local currencies. Management of the fund’s portfolio has been entrusted to Mirae Asset portfolio managers Joon Hyuk Heo and Ethan Yoon.

The Global X ETF will invest in corporate and sovereign debt based on:

  • economic indicators and conditions,
  • industry structure,
  • terms of trade,
  • political environment and
  • geopolitical issues

The expense ratio of the fund is 0.39%. The fund is the first actively-managed ETF from the Global X stable and is placed in its Income suite of ETFs.

EM – an important income asset class

“With this new launch, we are seeking to combine the expertise of seasoned emerging market investors with the efficiency, transparency, and tradability of an ETF,” said Luis Berruga, CEO of Global X ETFs. “The core pillar of our business is on delivering products that will serve as solutions for investors’ needs – it is our belief that the best way to access this important income-oriented asset class is through active management.”

Top emerging markets bond ETFs

Symbol ETF Name YTD Expense Ratio Index
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF -3.90% 0.39% JPMorgan EMBI Global Core Index – ETF Tracker
EMLC VanEck Vectors J.P. Morgan EM Local Currency Bond ETF -4.73% 0.30% J.P. Morgan Government Bond Index Emerging Markets Global Core Index – ETF Tracker
PCY Invesco Emerging Markets Sovereign Debt ETF -8.87% 0.50% DB Emerging Market USD Liquid Balanced Index – ETF Tracker
VWOB Vanguard Emerging Markets Government Bond ETF -3.28% 0.50% Barclays USD Emerging Markets Government RIC Capped Index – ETF Tracker
EBND SPDR Barclays Capital Emerging Markets Local Bond ETF -2.70% 0.30% Barclays Capital EM Local Currency Government Capped Index – ETF Tracker

 Related Story:   Global X FinTech ETF Hits 52-Week High                                                

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