Market Vectors Emerging Markets Local Currency Bond ETF (EMLC), has surpassed USD1.5bn in assets under management.
EMLC has seen an increase of more than USD500m in AUM in the last three months.
“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,” says Fran Rodilosso (pictured), fixed income portfolio manager at Market Vectors ETFs and one of two EMLC portfolio managers. “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, says: “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 ETF covering the emerging market local currency debt space.”
When EMLC was brought to market in 2010, 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 seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of JP Morgan GBI-EMG Core Index. As of 1 March 2013, the index tracked a selection of bonds issued in local currencies by 16 emerging market countries: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Romania, Russia, South Africa, Thailand and Turkey.