New York-based asset manager Van Eck Global is marking the one-year anniversary of its Market Vectors Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC), the first U.S.-listed exchange-traded fund (ETF) which seeks to track an index designed to provide investors with exposure to bonds issued in local currencies by emerging market governments. The Fund, which launched on July 22, 2010, recently passed the $500 million assets under management (AUM) threshold.
EMLC is up 6.22 percent from January 1 through June 30 of this year; 13.51 percent since inception (7/22/10 through 6/30/11). This compares favorably to both its ETF competitors and to many active fund managers covering the same space.
“In the year since we launched EMLC, we’ve seen a tremendous amount of interest from the marketplace in adding transparent, cost-efficient exposure to emerging market debt,” said Ed Lopez, Marketing Director with Van Eck Global. “And as we head into the second year of the Fund’s existence, we believe investors and advisors will continue to explore the opportunities that a vehicle like EMLC can provide, not only from a yield perspective, but also with regard to the added potential benefits of U.S. Dollar diversification.”
EMLC seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan Government Bond Index-Emerging Markets Global Core Index (ticker: GBIEMCOR
J.P. Morgan is one of the major providers of innovative emerging market indexes, and had approximately $130 billion benchmarked to its GBI-EM index family as of 7/21/11.
The Index currently tracks a selection of bonds issued in local currencies by the governments of fourteen emerging market countries representing Africa, Asia, Eastern Europe and Latin America: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Thailand, and Turkey. GBIEMCOR is market-cap weighted, with individual country exposures capped at 10 percent to provide more diversification among countries within the index.