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New ETFs Target Emerging Markets, Commodities

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Three ETFs offering portfolio exposure to commodities and emerging markets have just debuted.

WisdomTree Emerging Markets Local Debt Fund (ELD)

ELD is an actively managed ETF that aims to provide exposure to emerging market debt denominated in local currencies.

The fund charges annual expenses of 0.55 percent and is sub-advised by Mellon Capital Management.

The effective duration for bonds owned within ELD’s portfolio is 4.56 years.

“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 U.S. and developed world,” said Bruce Lavine, WisdomTree President and COO in a statement.

“ELD will offer full exposure to local currencies, a feature we consider important for many investors because of the potential lower correlations and currency appreciation against the U.S. dollar,” he explained.

EGShares INDXX India Infrastructure Index Fund (INXX)

INXX follows the Indxx India Infrastructure Index, which contains 30 stocks involved in India’s infrastructure industry.

The index is free-float market cap weighted, and the fund is sponsored by New York-based Emerging Global Advisors. INXX’s annual expense ratio is 0.85 percent.

United States Commodity Index Fund (USCI)
USCI is linked to the SummerHaven Dynamic Commodity Index and is comprised of 14 commodity futures contracts selected on a monthly basis using fundamental factors. Each futures contract is given an equal weight assignment.

The annual expense ratio for USCI is 0.95 percent, and the fund is sponsored by United States Commodity Funds.

Launched by United States Commodity Funds of Alameda, Calif., USCI is organized as a limited partnership under the Securities Act of 1933. Owners get a schedule K-1 for tax reporting purposes.