Van Eck Global, the New York-based money management firm known for its commodities-related investments strategies, filed paperwork with the Securities and Exchange Commission to market a fixed-income ETF focused on yen-denominated Japanese debt.
The Market Vectors Japanese Bond ETF will focus both on government and corporate debt, though the registration statement said government or government-related debt will be capped at 25 percent of the fund’s assets. The company didn’t specify ratings or maturity requirements for the fund as dictated by its benchmark, the Market Vectors Japanese Bond Index.
The fund would join a field of international bond ETFs that canvass the developed world, but don’t zero in on a particular country. Some also expect Japanese bond issuance to increase in the coming months and years as Japan seeks to fund the massive cleanup and rebuilding process following the earthquake and tsunami on March 11 that left in its wake the worst nuclear energy accident in 25 years.
Van Eck didn’t say in the filing what the Japan ETF’s ticker would be or how much it would cost investors.
Our annual fixed-income conference is coming up in a little more than a week and I can’t wait.
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