ETF tracks the J.P. Morgan GBI-EMG Core Index…
Philipp Schlegel, Director International Business Development at VanEck
Provides exposure to bonds issued in local currencies by emerging markets governments
ETF offers potential for higher yields and currency appreciation
VanEck Investments Ltd. today announces the listing of the VanEck Vectors J.P. Morgan EM Local Currency Bond UCITS ETF (EMLC) in Switzerland. Der Exchange-Traded Fund tracks the J.P. Morgan GBI-EMG Core Index (index ticker: GBIEMCOR) which is designed to provide exposure to bonds issued in local currencies by emerging markets governments.
EMLC is listed on SIX Swiss Exchange and has a total expense ratio of 0.44%.
Philipp Schlegel, Director International Business Development 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 be less correlated to the U.S. dollar and thus provide a way to diversify a portfolio.”
As of 30 June 2017, the J.P. Morgan GBI-EMG Core Index is composed of a selection of bonds issued in local currencies by 17 emerging markets governments: Argentina, Brazil, Chile, Colombia, Czech Republic, 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.
Philipp Schlegel, Director International Business Development at VanEck added:
“We are pleased to add EMLC to our ETF line-up in Switzerland that also includes two gold mining equity ETFs and MOAT, a strategic beta ETF. Investor interest in emerging markets has risen in the past few yearsas investors recognise the potential for higher economic growth than in developed markets. EMLC reflects our commitment to offering forward-looking investment solutions that strengthen a long-term portfolio.”