ProShares launches first short-term emerging markets bond ETF in U.S.

By Toni Weeks

San Luis Obispo, Calif., Nov. 21 - ProShares announced in a press release that its new ProShares Short Term USD Emerging Markets Bond ETF has launched. The exchange-traded fund is the first short-term emerging markets bond ETF in the United States.

"Investors concerned about rising interest rates have been flooding into short-term bond ETFs," chairman and chief executive officer of ProShares Advisors LLC Michael Sapir said in the release.

"We are pleased to introduce the nation's first short-term emerging markets bond ETF, which offers exposure to this attractive-yielding asset class while limiting the impact of rising interest rates."

The ETF tracks the DBIQ Short Duration Emerging Market Bond index, which is composed of a diversified portfolio of dollar-denominated emerging markets bonds with a weighted average maturity of three years or less.

The index currently includes bonds from 19 countries issued by sovereign governments, other government entities and agencies, and corporations with significant government ownership. Each country is limited to a 10% weight in the index.

According to an N-1A filing with the Securities and Exchange Commission, the fund will invest at least 80% of its total assets in securities of the index under normal conditions.

Alexander Ilyasov is the portfolio manager.

The fund trades on the BATS Exchange under the symbol "EMSH."

Bethesda, Md.-based ProShares Advisors will hold total annual fund operating expenses to 0.5% until Sept. 30, 3015.

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