NEW YORK--(BUSINESS WIRE)--Market Vectors Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC), has surpassed $1 billion in assets under management, it was announced today.
“We have seen continued interest in emerging market local currency bonds, particularly in light of the third round of quantitative easing (QE3) and its potential negative effects on the U.S. dollar. EMLC has been an excellent and cost-efficient way to quickly add broad exposure to this asset class.”
Fran Rodilosso, one of EMLC’s two portfolio managers, believes emerging markets will remain a compelling story. He explains that given “current higher interest rates coupled with lower debt, smaller deficits, growing productivity and central bank willingness to act in a vigilant manner, certain emerging markets have currencies that appear to be in a far better fundamental state than their G7 counterparts.”
Ed Lopez, Marketing Director for Market Vectors ETFs, adds, “We have seen continued interest in emerging market local currency bonds, particularly in light of the third round of quantitative easing (QE3) and its potential negative effects on the U.S. dollar. EMLC has been an excellent and cost-efficient way to quickly add broad exposure to this asset class.”
When EMLC was brought to market in 2010, it was the first U.S.-listed exchange-traded fund designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments. The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan GBI-EMG Core Index. As of October 31, 2012, the Index tracked a selection of bonds issued in local currencies by fifteen emerging market countries: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Russia, South Africa, Thailand and Turkey.
Mr. Rodilosso has 20 years of experience trading and managing risk in fixed income investment strategies, including 17 years covering emerging markets. In addition to EMLC, other Market Vectors ETFs under his watch are LatAm Aggregate Bond ETF (NYSE Arca: BONO), Emerging Markets High Yield Bond ETF (NYSE Arca: HYEM), International High Yield Bond ETF (NYSE Arca: IHY), Renminbi Bond ETF (NYSE Arca: CHLC), Fallen Angel High Yield Bond ETF (NYSE Arca: ANGL) and Investment Grade Floating Rate ETF (NYSE Arca: FLTR).
More information on EMLC can be found by visiting www.marketvectorsetfs.com/emlc.
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Please note that the information herein represents the opinion of the author and these opinions may change at any time and from time to time. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Non-Van Eck Global proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
About Market Vectors ETFs
Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family currently totals $27.9 billion in assets under management, making it the fifth largest ETP family in the U.S. and eighth largest worldwide as of September 30, 2012.
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and manages approximately $37.8 billion in investor assets as of September 30, 2012.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Debt securities carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health. The Funds' underlying securities may be subject to call risk, which may result in the Funds having to reinvest the proceeds at lower interest rates, resulting in a decline in the Funds' income.
Investments in emerging market securities are subject to elevated risks which include, among others, expropriation, confiscatory taxation, issues with repatriation of investment income, limitations of foreign ownership, political instability, armed conflict and social instability. As the Funds invest in securities denominated in foreign currencies and some of the income received by the Funds will be in foreign currency, changes in currency exchange rates may negatively impact the Funds’ return. The Funds will generally invest a portion of its assets in Rule 144A securities. Rule 144A securities are restricted securities. They may be less liquid than other investments because, at times, such securities cannot be readily sold in broad public markets and the Funds might be unable to dispose of such securities promptly or at reasonable prices. A restricted security that was liquid at the time of purchase may subsequently become illiquid.
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Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit vaneck.com/etf. Please read the prospectus and summary prospectus carefully before investing.
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