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Market Vectors to amend LatAm Aggregate Bond ETF in December
By Jennifer Chiou
New York, Oct. 2 - Market Vectors ETFs announced changes to its Market Vectors LatAm Aggregate Bond exchange-traded fund (NYSE Arca: BONO), including a new investment objective, which will be to track the price and yield performance of the Market Vectors EM Aggregate Bond index.
According to a press release, the fund will change its name to Market Vectors Emerging Markets Aggregate Bond ETF on Dec. 10. The ticker will also be updated to "EMAG."
The index includes the four major categories of emerging markets bonds: dollar- and euro-denominated sovereigns, local-currency sovereigns, dollar- and euro-denominated corporates and local-currency corporates.
Additionally, the index is expected to continue to include Latin American debt as an important component and will include Asian, Eastern European, Middle Eastern and African debt as well, the release stated.
Like the existing fund, the new fund is expected to have a gross expense ratio of 1.26% and a net expense ratio of 0.49%.
Van Eck Global, which sponsors the Market Vectors family of ETFs, has agreed to waive fees and/or pay the new fund's expenses to prevent the operating fees from exceeding 0.49% of the fund's average daily net assets per year until at least Sept. 1, 2015.
"A key feature of the index is that it has a relatively balanced exposure to both local-currency and hard-currency debt," marketing director Ed Lopez said in the release.
"We expect that this will allow the ETF to maintain broadly diversified exposure within the emerging markets debt universe, presenting an attractive option to investors who are not able to devote significant resources to researching currencies and credit ratings."
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