US asset manager WisdomTree has listed an actively managed ETF investing in emerging markets local debt, on NYSE Arca.
The Emerging Markets Local Debt Fund, which has an expense ratio of 0.55%, is designed to deliver a high level of total return consisting of income and capital appreciation.
The fund invests in debt, including fixed income securities such as bonds and notes, of emerging market issuers that are denominated in local currencies.
WisdomTree president Bruce Lavine says: "We believe emerging market debt is an attractive asset class, based on the faster growth and typically higher yields available in these countries relative to the US and developed world."
He adds the exposure to local currencies is an important feature, due to the potential lower correlations and currency appreciation against the US dollar.
The firm says risks include possible loss of principal investment, potential loss from currency fluctuation and political or economic uncertainty, among other factors.
ETF is sub-advised by Mellon Capital Management Corporation.
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