Both are listed on the London Stock Exchange.
The iShares Barclays Capital EM Asia Local Government Capped Bond Fund is the first ETF in Europe giving investors exposure to fixed rate government bonds issued by emerging market countries in Asia and that are denominated in local currencies.
These countries and currencies include Thailand, South Korea, the Philippines, Malaysia and Indonesia. The ETF physically replicates the index designed with Barclays Capital, with a maximum of 40% in a single country.
The fund is managed and traded by BlackRock’s fixed income team in Singapore.
Alternatively, the company has made available the iShares MSCI Mexico IMI Capped Fund, another that physically replicates the index. The cap in this case is that no single group accounts for more than 30% of the index.
The funds’ TERs are 0.5% and 0.65% respectively.
Commenting, Axel Lomholt, Head of iShares Product Development EMEA, said: “European investors are continuing to search for new sources of yield, and new ways in which they can secure sustainable income streams. Asian debt markets have grown steadily over the past ten years, and bonds denominated in local currencies provide a different yield and risk profile to US dollar denominated debt, allowing investors to diversify their fixed income holdings.
"As this hunt for yield continues, we are seeing significant interest in fixed income ETFs from professional investors looking for efficient and cost effective ways to construct a portfolio.
“We have also built out our emerging markets range to offer new opportunities to access growing markets at a country and regional level efficiently.”
