Market VectorsEmerging Markets Local Currency Bond ETF (EMLC) Passes $1.5 Billion Mark
Strong emerging market fundamentals coupled with perceived weakness in developed market currencies have driven interest in EMLC, the first U.S.-listed ETF to provide exposure to local currency EM bonds
NEW YORK--(BUSINESS WIRE)-- Market Vectors Emerging Markets Local Currency Bond ETF(NYSE Arca: EMLC), has surpassed $1.5 billion in assets under management (AUM), it was announced today. EMLC has seen an increase of more than $500 million in AUM in the last three months.
"Many local currency-denominated emerging market bonds are currently delivering more attractive yields than traditional fixed income investments, while at the same time offering currency and credit fundamentals that appear to be on more solid footing than fixed income investments denominated in U.S. Dollars, Euros or the Yen," said Fran Rodilosso, fixed income portfolio manager at Market Vectors ETFs and one of two EMLC portfolio managers. "EMLC offers an excellent way to gain exposure to this space and the list of constituent countries in the Fund's underlying index has been growing, with Romania and Nigeria having been recently added."
Ed Lopez, Marketing Director for Market Vectors ETFs, added, "We've been extremely pleased with investor response to EMLC, which has produced strong returns while currently having a lower expense ratio than all other U.S. ETF covering the emerging market local currency debt space."
When EMLC was brought to market in 2010, it was the first U.S.-listed exchange-traded fund designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments. The Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan GBI-EMG Core Index. As of March 1, 2013, the Index tracked a selection of bonds issued in local currencies by 16 emerging market countries: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Romania, Russia, South Africa, Thailand and Turkey.
More information on EMLC can be found by visiting www.marketvectorsetfs.com/emlc.
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About Market Vectors ETFs
Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family totaled $27.6 billion in assets under management, making it the fifth largest ETP family in the U.S. and eighth largest worldwide as of December 31, 2012.
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and managed approximately $36.6 billion in investor assets as of December 31, 2012.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Debt securities carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health. The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.
Investments in emerging market securities are subject to elevated risks which include, among others, expropriation, confiscatory taxation, issues with repatriation of investment income, limitations of foreign ownership, political instability, armed conflict and social instability. As the Fund invest in securities denominated in foreign currencies and all of the income received by the Fund will be in foreign currency, changes in currency exchange rates may negatively impact the Fund's return. The Fund will generally invest a portion of its assets in Rule 144A securities. Rule 144A securities are restricted securities. They may be less liquid than other investments because, at times, such securities cannot be readily sold in broad public markets and the Fund might be unable to dispose of such securities promptly or at reasonable prices. A restricted security that was liquid at the time of purchase may subsequently become illiquid.
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Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called "creation units" and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
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