Van Eck Global, a New York-based asset manager, has launched Market Vectors Emerging Markets Local Currency (EMLC) Bond ETF, a US-listed exchange-traded fund (ETF) designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments.
According to Van Eck Global, EMLC seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of JP Morgan Government Bond Index-Emerging Markets Global Core Index.
The index currently tracks a selection of bonds issued in local currencies by 13 emerging market countries representing Latin America, Eastern Europe, Africa, and Asia: Brazil, Colombia, Egypt, Hungary, Indonesia, Malaysia, Mexico, Peru, Poland, Russia, South Africa, Thailand, Turkey.
Jan van Eck, principal at Van Eck Global, said: “With EMLC, we’ve created an ETF that allows investors to participate in the dynamics of the local emerging market economies, which include potential for currency appreciation and higher yields, relative to their developed market counterparts.
“We’re very excited to be able to provide a means for tracking an index from the popular JP Morgan local currency bond index family, particularly at a time when the global markets are witnessing the growing importance of new economic leaders in regions such as Asia and Latin America.”