SPDR® ETFs launches BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF

nov 21, 2012

Minute Read

SPDR ETFs, the exchange traded funds (ETF) platform of State Street Global Advisors (SSgA), announced today that it has launched the SPDR BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF on the Deutsche Börse…..

The new physically-backed ETF is managed by SSgA’s specialist corporate bond team and expands the SPDR ETFs range of 15 fixed income ETFs in Europe. The fund adds to the existing emerging market debt SPDRs: Europe’s largest ETF offering access to local currency EM government bonds, the SPDR Barclays Emerging Markets Local Bond UCITS ETF and the SPDR Citi Asia Local Government Bond UCITS ETF, Europe’s first ETF to offer broad-market access to Asian government bonds including China.

The Fund has been launched to give investors access to a diversified portfolio of investment grade and high yield emerging market corporate debt, denominated in USD. It tracks a broad, well-known benchmark from BofA Merrill Lynch, covering more than 25 markets, c.600 issues and c.230 issuers with a minimum rating floor of CCC. Emerging market corporate bonds can offer investors attractive yield opportunities in comparison to some developed corporate bonds, whilst retaining the liquidity benefits of hard currency (USD) issuance.

Scott Ebner, global head of product development at SPDR ETFs, commented: “Investor interest in emerging markets continues to grow because of the positive long-term growth story. Clients are looking for opportunities to diversify their portfolios within emerging markets across both equity and fixed income. ETFs provide a liquid, diverse and cost-effective way to achieve that.”

There are now 44 SPDR ETFs listed on European exchanges including the London Stock Exchange and Deutsche Börse.

The SPDR BofA Merrill Lynch Emerging Markets Corporate Bond UCITS ETF is also registered for sale in UK, Ireland, Sweden, the Netherlands, Italy, Germany and France.