Posts tagged as:

EMHY

Growth and evolution have been recurring themes in the exchange-traded universe in 2012, as investors are now faced with a diverse product lineup of  over 1,400 ETPs. More than 160 of those are new additions in 2012. And while many of the new ETFs that launched in 2012 are on the small side, some of these funds have come flying out of the gates to attract significant cash inflows [for more ETF news and analysis subscribe to our free newsletter]. [click to continue…]

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Emerging market ETFs have seen a surge in interest in recent years, as U.S.-based investors have embraced this asset class as a core components of any long-term, growth-focused strategy. With most developed markets still trying to recover from the financial crisis, the growth potential of emerging markets has been even more appealing. Vanguard recently shook up the discussion around emerging markets ETFs when it announced it will transition its popular VWO from an MSCI index to a FTSE benchmark. While there are some similarities between the indexes, there are some big differences as well. For example, FTSE considers South Korea to be a developed market, while MSCI counts it as emerging (and therefore one of the largest allocations in products such as EEM). 

Many investors would likely be surprised to learn that significant portions of their “emerging markets” ETFs have exposure to economies that most have considered “developed” by many organizations for decades. Specifically, South Korea and Taiwan meet the developed market standard of many index providers and organizations such as the IMF, and exhibit per capita GDPs, literacy rates, and life expectancy rates that make them more similar to the U.S. and Canada than Brazil and China. In many of those categories, South Korea and Taiwan score higher than markets such as Italy.

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Van Eck rolled out another international high yield product this week, debuting its Market Vectors Emerging Markets High Yield Bond ETF (HYEM). The new fund will seek to replicate the BofA Merrill Lynch High Yield US Emerging Markets Liquid Corporate Plus Index, a benchmark that consists of debt from issuers in a number of developing […]

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After capping off one of the strongest first quarters in 14 years, major benchmarks have stalled their rally, as conflicting data from all around the world has put markets in a rut. As we head into the summer months, investors will hope overarching issues, like European debt, will cool off but all indications point to […]

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iShares continues to expand its suite of fixed income ETFs in 2012, rolling out a pair of ETFs that bring a new level of granularity to corporate bonds. The Baa-Ba Rated Corporate Bond Fund (QLTB) and B-Ca Rated Corporate Bond Fund (QLTC) will seek to replicate indexes comprised of bonds with specific credit ratings, segmenting […]

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Van Eck continued a recent trend of expansion in the junk bond ETF space today with the launch of a product that targets a unique segment of the high yield bond market. The new Market Vectors Fallen Angel High Yield Bond ETF (ANGL) will focus on debt that was originally rated as investment grade quality […]

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iShares introduced a pair of new ETFs this week that offer exposure to junk bonds from issuers outside the U.S., opening a new segment of the global fixed income market that had previously been difficult to access. The two new funds include a product that targets junk bonds from emerging markets as well as a […]

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