Market Vectors Emerging Markets Local Currency Bond ETF powers to $1.5 billion in assets

Mar 12th, 2013 | By | Category: Fixed Income

The Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) has surpassed $1.5 billion in assets under management, adding more than $500 million in the last three months alone.

Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) powers to $1.5 billion in assets under management

Nigerian government bonds were recently added to the Market Vectors Emerging Markets Local Currency Bond ETF (EMLC).

When the fund was brought to market in July 2010 on the NYSE Arca, it was the first US-listed exchange-traded fund designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments.

The fund’s underlying index is the JP Morgan GBI-EMG Core Index. This index currently comprises a selection of bonds issued by 16 emerging market countries: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Romania, Russia, South Africa, Thailand and Turkey.

Fran Rodilosso, portfolio manager at Market Vectors ETFs, said: “Many local currency-denominated emerging market bonds are currently delivering more attractive yields than traditional fixed income investments, while at the same time offering currency and credit fundamentals that appear to be on more solid footing than fixed income investments denominated in US dollars, euros or the yen. EMLC offers an excellent way to gain exposure to this space and the list of constituent countries in the fund’s underlying index has been growing, with Romania and Nigeria having been recently added.”

Ed Lopez, Marketing Director for Market Vectors ETFs, added: “We’ve been extremely pleased with investor response to EMLC, which has produced strong returns while currently having a lower expense ratio than all other US ETFs covering the emerging market local currency debt space.”

European investors looking for a locally listed equivalent have a number of funds to consider, including the Pimco EM Advantage Local Bond Index Source ETF (EMLB) listed on the London Stock Exchange; the iShares Barclays Capital Emerging Market Local Govt Bond ETF (SEML) listed on the London Stock Exchange, Borsa Italiana, Deutsche Börse and SIX Swiss Exchange; and the SPDR Barclays Capital Emerging Markets Local Bond ETF (EMDL) listed on the London Stock Exchange, Borsa Italiana, Deutsche Börse, SIX Swiss Exchange and Euronext.

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