The iShares Barclays Capital Emerging Market Local Govt Bond fund is listed on the London Stock Exchange, bringing the company’s ETF fixed income range up to 43. The range currently holds $30bn in assets under management.
The index the ETF is designed against is the Barclays Capital Emerging Market Local Currency Core Government Bond Index.
It invests in physical bonds through the fixed-rate debt of emerging market governments denominated in their local currencies.
Axel Lomholt, head of product development for iShares EMEA said: “We have seen sustained demand from investors for an effective way to access local currency emerging market bonds. Two reasons for this demand are the high yield of these bonds and the currency potential. Over the past two years, many of the emerging market currencies appreciated versus hard currencies like the dollar, euro or sterling. Local currency bonds can be an effective way for investors to benefit from this appreciation.”
