Daily ETF Watch: EM Bond Funds To Launch

Emerging Global plans three corporate bond ETFs spanning the yield curve.

Emerging Global Advisors on Wednesday, Jan. 8, will list three new ETFs that will invest in short-, intermediate- and long-term emerging market investment-grade bonds—the latest offering in an asset class that could serve up outsized income in an era of ongoing low yields.

However, the rollout comes at a time when investors are concerned that asset prices—stocks and bonds alike—in the emerging markets are likely to be under quite a bit of downward pressure as the Federal Reserve scales back its five years of quantitative easing.

The new proposed funds include the:

• EGShares TCW EM Short Term Investment Grade Bond ETF (SEMF)
• EGShares TCW EM Intermediate Term Investment Grade Bond ETF (IEMF)
• EGShares TCW EM Long Term Investment Grade Bond ETF (LEMF)

As noted, the new offerings speak to a current concern in the world of investments that the postcrash era of “financial repression” created by central banks around the world has made finding decent yield quite difficult.

All three funds will charge 0.65 percent, or $65 for every $10,000 invested.

Filings

WisdomTree has filed regulatory paperwork for two long/short Treasury funds to invest in both sides of the market in a rising-interest-rate environment.

The proposed ETFs are:

• WisdomTree 20+ Year U.S. Treasury Negative Duration Fund
• WisdomTree 3-7 Year U.S. Treasury Negative Duration Fund

Both will track indexes that comprise a long and short portfolio of U.S. Treasury securities. Both funds will invest in short positions in futures contracts on U.S. Treasurys or may short U.S. Treasurys.

Associated fees and tickers weren’t detailed in the filings.