The iShares Morningstar $ Emerging Markets Corporate Bond ETF is now available on the London Stock Exchange and the Better Alternative Trading System (BATS) based in a suburb of Kansas City.
It offers investors passive exposure to dollar-denominated debt issued by companies based in Latin America, Eastern Europe, the Middle East, Africa and Asia. The issuer-selection process builds in a screen so no single issuer accounts for more than 5% of the fund.
The business rationale comes on the back of the increase in dollar-denominated debt issued by emerging market companies in the past decade, with $188bn issued last year.
The portfolios for both funds will be managed by iShares’ fixed income team in San Francisco.
Commenting, Axel Lomholt, head of iShares product development EMEA, confirmed there are plans in place to expand the fixed income product range.