iShares launches emerging market corporate bond ETF
iShares has launched the first dollar denominated emerging market corporate bond exchange traded fund (ETF) available in Europe.
The ETF platform of BlackRock is offering the iShares Morningstar US Dollar Emerging Markets Corporate Bond ETF, to provide a diversified exposure to US dollar denominated debt issued by corporates based in Latin America, Eastern Europe, the Middle East, Africa and Asia.
Emerging market corporates issued $188bn of bonds in 2011 – more than twice the level of dollar debt issued by emerging market governments.
Axel Lomholt, head of iShares product development EMEA, said: “Emerging market corporate bonds provide an opportunity over the long term to capture the next stage in the growth and development of these countries.
“This area of fixed income offers investors the potential for attractive total returns as well as a strong income stream, and our new ETF is the first of its kind in Europe to deliver this exposure in a single, cost-efficient trade.
“As interest in fixed income ETFs continues to grow, we will expand our product range further with high quality funds that deliver transparent and liquid access to areas of the market.”
A US domiciled fund with the same exposure has already been listed.
Both portfolios will be managed by iShares’ fixed income team in San Francisco