WisdomTree Investments introduced a new bond ETF that targets debt issued by companies based in emerging market countries such as Brazil, Russia, and Mexico.
The WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is an actively managed ETF with broad-based exposure to corporate bonds of emerging market issuers across Asia, Latin America, Eastern Europe, Africa and the Middle East. EMCB has an expense ratio of 0.60%.
Investment grade emerging market corporate bonds have historically offered a significant yield premium compared to similarly rated U.S. corporate securities. EMCB will seek to maintain at least 65% of its holdings in investment grade assets with intermediate-term duration between 2 and 10 years.
EMCB is the first exchange-traded product to be launched in connection with WisdomTree’s sub-advisory relationship with Western Asset Management.