WisdomTree Adds Corporate EM Bond Fund

By ETFguide.com,

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WisdomTree Adds Corporate EM Bond Fund
March 9, 2012

WisdomTree Investments introduced a new bond ETF that targets debt issued by companies based in emerging market countries like Brazil, Russia, and Mexico.

The WisdomTree Emerging Markets Corporate Bond Fund (NasdaqGS: EMCB) is an actively managed ETF with broad-based exposure to corporate bonds of emerging market issuers across Asia, Latin America, Eastern Europe, Africa and the Middle East.  EMCB has an expense ratio of 0.60%. 

'WisdomTree is pleased to offer the first Corporate Bond ETF that offers access to a rapidly growing asset class, the debt of a broad array of quality corporate issuers in the emerging markets. These bonds are supported by the same favorable growth rates, attractive demographics, and improving fundamentals which have driven strong relative returns in emerging market assets in general,' said Bruce Lavine, President & COO, WisdomTree. 

Investment grade emerging market corporate bonds have historically offered a significant yield premium compared to similarly rated U.S. corporate securities.  EMCB will seek to maintain at least 65% of its holdings in investment grade assets with intermediate-term duration between 2 and 10 years. 

'We are equally pleased to tap the expertise of Western Asset Management Company, one of the world's leading fixed income managers, as sub-advisor to the Fund,' Mr. Lavine added. Western Asset is a subsidiary of Legg Mason ( LM ). 

Commenting on the strategy, Matthew Duda, EMCB Portfolio Manager of Western Asset, said 'While the investmentprocess begins with an assessment of the macro and country-specific risks, company-specific factors may drive emerging market corporate bond returns to a larger extent than country-level issues as sovereign risk
trends lower in this asset class over time. We therefore combine top-down macroeconomic analysis with bottoms-up fundamental analysis of the industries and corporations essential to the ongoing industrialization and development of the emerging world.'

EMCB is the first product to be launched in connection with WisdomTree's sub-advisory relationship with Western Asset Management. 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: LM

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