Newest ETF Targets Emerging-Market Corporate Debt

by Kyle Woodley | March 12, 2012 9:15 am

Compared to the general proliferation of the exchange-traded fund world[1], last week was slow for new ETFs, with just one fund launching.

The Wisdom Tree Emerging Markets Corporate Bond Fund (NASDAQ:EMCB[2]) is a relative rarity. While a number of funds — such as the iShares JPMorgan USD Emerging Market Bond Fund ETF (NYSE:EMB[3]) and Market Vectors Emerging Markets Local ETF (NYSE:EMLC[4]) — invest in emerging-market government debt, EMCB targets corporate debt.

Its sector allocation is heaviest in oil companies, at 28.1%, followed by cash (21.4%), metals (15.2%) and industrials (13.5%). Slightly more than a quarter of its assets are allocated in Brazil, 17.4% in Russia and 11.6% in Mexico, including holdings in big names like Petrobas (NYSE:PBR[5], 5.3%) and Lukoil (PINK:LUKOY[6], 2.58%).

EMCB has a 0.6% expense ratio, slightly more than the 0.4% average expense ratio among corporate debt ETFs.

Including last week’s addition to the ETF investing world, 73 new funds have been brought to market in 2012, but just two so far in March — the other being Bill Gross’ PIMCO Total Return ETF (NYSE:TRXT[7]), which launched two weeks ago to much fanfare[8].

Kyle Woodley[9] is the assistant editor of InvestorPlace.com[10]. As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @KyleWoodley[11].

Endnotes:
  1. general proliferation of the exchange-traded fund world: http://investorplace.com/2012/03/world-of-etfs-continues-to-surge/
  2. EMCB: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMCB
  3. EMB: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMB
  4. EMLC: http://studio-5.financialcontent.com/investplace/quote?Symbol=EMLC
  5. PBR: http://studio-5.financialcontent.com/investplace/quote?Symbol=PBR
  6. LUKOY: http://studio-5.financialcontent.com/investplace/quote?Symbol=LUKOY
  7. TRXT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TRXT
  8. launched two weeks ago to much fanfare: http://investorplace.com/2012/03/5-new-etfs-launch-but-spotlights-on-trxt/
  9. Kyle Woodley: http://investorplace.com/author/kyle-woodley/
  10. InvestorPlace.com: http://investorplace.com/
  11. @KyleWoodley: https://twitter.com/#%21/kylewoodley

Source URL: http://investorplace.com/2012/03/new-etf-wisdom-tree-emerging-markets-corporate-bond-fund-emcb/
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