BlackRock has announced the launch of the iShares $ EM Bond Active UCITS ETF (ISOV), an active emerging market debt (EMD) ETF.
The fund will combine active security selection with the liquidity and transparency of the ETF wrapper.
Emerging market debt represents “one of the most diverse potential opportunity sets in fixed income”, according to the firm, with high yields, US interest rates near their peak and a weaker dollar, all contributing to a strong backdrop.
Michel Aubenas, head of emerging market debt at BlackRock, said: “Emerging market debt is an asset class where consistency matters.
“Yields are at historically attractive levels, but returns are unlikely to come from a single theme or trade.”
The new fund will be managed by Aubenas, Ana-Sofia Monck and Kirill Veretinskii and supported by the wider global emerging market debt team at BlackRock.
Vasiliki Pachatouridi, head of iShares fixed income product strategy EMEA, added: “Our research shows that many European investors remain underallocated to emerging market debt.”
He attributed this mostly to concerns over complexity and volatility, which the new fund aims to address with the transparency and liquidity of the ETF wrapper.
See also: What does 2026 hold in store for emerging market debt?
