Global X ETFs, a New York-based provider of exchange-traded funds (ETFs), has launched the Global X Emerging Markets Bond ETF (EMBD). The Fund is sub-advised by Global X affiliate, Mirae Asset Global Investments. Today’s announcement marks the first time that Global X ETFs has offered an actively managed strategy.
EMBD aims to provide investors with strategic exposure to the growing universe of emerging market debt. With a total market size of USD26 trillion, emerging market debt represents more than 20 per cent of the global bond market and is a common fixture in income-oriented portfolios.The Fund primarily invests in emerging market debt securities denominated in US dollars, however, the Fund may also invest in those denominated in applicable local foreign currencies. Securities may include fixed-rate and floating-rate debt instruments issued by sovereign, quasi-sovereign, and corporate entities from emerging market countries.
EMBD will utilise the expertise of tenured Mirae Asset portfolio managers Joon Hyuk Heo and Ethan Yoon, who have combined industry experience totalling more than 35 years. The portfolio managers are supported by more than 20 professionals around the globe from Mirae Asset’s Investment, Global Macroeconomic Strategy, and Emerging Markets Research Teams. EMBD’s country allocation will be based on factors including, but not limited to, economic indicators and conditions, industry structure, terms of trade, political environment and geopolitical issues. The portfolio managers will additionally seek to identify potential corporate and sovereign opportunities in support of bolstering EMBD’s risk-adjusted returns.
In partnering with Mirae Asset’s experienced team, Global X aims to provide investors with a rigorously designed and managed investment solution in a traditionally difficult-to-access segment of the market. EMBD will capitalise on the extensive experience of Mirae Asset’s fixed income team, and pair it with the client-focused approach that underpins Global X ETFs, with a competitive 0.39 per cent expense ratio.
“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,” says 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. We believe the intimate knowledge and research that Joon Hyuk and Ethan have developed over their careers, combined with extensive support across the Mirae Asset organisation, should be a crucial advantage for our investors in accessing these ever-changing markets. We’re thrilled to bring their skillset to our investors.”