ETF tracks the J.P. Morgan GBI-EMG Core Index…..
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy
Uwe Eberle, Head of International Business Development and Distribution at VanEck
Provides exposure to bonds issued in local currencies by emerging markets governments
VanEck Investments Ltd. today announces the launch of the VanEck Vectors J.P. Morgan EM Local Currency Bond UCITS ETF in Europe. The exchange-traded fund (ETF) tracks the J.P. Morgan GBI-EMG Core Index (ticker: GBIEMCOR) which is designed to provide exposure to bonds issued in local currencies by emerging markets governments. The Emerging Markets Local Currency (EMLC) fund is listed on the London Stock Exchange. It has a total expense ratio of 0.47 percent. Listings on further European Stock Exchanges will follow in the short term.
Uwe Eberle, Head of International Business Development and Distribution at VanEck said: “EMLC allows investors to participate in local emerging markets economies which historically have had higher yields than developed markets and potential for currency appreciation. Additionally, local currency emerging markets bonds tend to have a lower correlation to the U.S. dollar and thus provide a great way to diversify a portfolio.”
The J.P. Morgan GBI-EMG Core Index is composed of a selection of bonds issued in local currencies by 16 emerging markets governments: Argentina, Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Romania, Russia, Thailand, Turkey, and South Africa. The index is market-cap weighted, with individual country exposure capped at 10 percent to provide more country diversification. The index is rebalanced monthly. EMLC is the fourth UCITS ETF offered under the VanEck Vectors brand.
Uwe Eberle added: “After introducing our UCITS ETFs in 2015 with two gold mining equity ETFs and MOAT, a strategic beta ETF, we are pleased to add EMLC to our line-up in Europe. Investor interest in emerging markets has been on the rise as we see the potential for higher economic growth than in developed markets and substantial EM local real rates. EMLC reflects our commitment to offering forward-looking investment solutions that strengthen a long-term portfolio.”