State Street Global Advisors (SSgA) has launched the SPDR BofA Merrill Lynch 0–5 Year EM USD Government Bond UCITS ETF, which has listed on the Deutsche Börse, Xetra.
It is the first European ETF to provide exposure to short maturity emerging market bonds in hard currency.
The new ETF, which tracks the BofA Merrill Lynch 0–5 Year EM USD Government Bond ex-144a Index, looks to reflect the performance of short-maturity emerging market government debt issued in US dollars. It opens up a new segment of the emerging market bond universe for investors wanting to lower the duration or the volatility of their existing hard currency emerging market debt investments. Investors can also increase the yield of their existing US dollar short maturity investments.
Edwin Mars, Sr Sales Manager IBG SPDR ETFs Benelux, says: “This new ETF captures the global investment universe of short maturity emerging market bonds and adds to our existing emerging market fixed income capabilities.”
“It allows investors to reduce the duration of their existing emerging market debt exposure or increase the yield of the US dollar portion of their portfolio, while giving them full transparency of their holdings on a daily basis. We are delighted to launch a SPDR ETF that offers investors broader access to the emerging markets fixed income universe, in one simple trade.”