NEW YORK (TheStreet) -- During the summer Van Eck launched the first emerging-market bond ETF denominated in local currencies with the Market Vectors Emerging Markets Local Currency Bond ETF (EMLC). Shortly thereafter came the WisdomTree Emerging Markets Local Debt Fund (ELD). While the names of the funds are almost identical, there is one potentially important distinction: The Market Vectors fund is an index fund tracking the J.P. Morgan GBI-EMG Core Index while the WisdomTree fund is actively managed by Mellon Capital Management.While two months of side-by-side trade is far too soon to draw a definitive conclusion, the actively managed WisdomTree fund has offered the smoother ride versus the Market Vectors fund. Smoother is not necessarily better; some investors might prefer more volatility. And, again, while it is too early to know whether this stands up, anyone interested in the space should continue to watch this dynamic.
|Mexico, which just celebrated its bicentennial, is among the major holdings in two emerging-market ETFs.|
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