Van Eck has filed with the US Securities and Exchange Commission to launch two fixed income ETFs, providing exposure to emerging markets local currency debt and investment-grade floating rate bonds.
The filing shows the Market Vectors Emerging Markets Local Currency Debt ETF will track the respective total return index, comprising fixed interest rate bonds with at least one year to maturity. These bonds will also have a minimum outstanding amount equal to $100m in local currency and will be classed as sovereign debt, supra-national bonds or corporate bonds. The filing says corporate bonds must be rated equal to or better than the sovereign rating of the debt issued by the country. The index is rebalanced on a monthly basis. The firm warns there are heightened risks associated ...
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