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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