Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) Marks Third Anniversary
Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) Marks Third Anniversary
Fund was first U.S.-listed ETF to focus on local currency EM bonds
NEW YORK--(BUSINESS WIRE)-- Market Vectors Emerging Markets Local Currency Bond ETF(NYSE Arca: EMLC), celebrated its third anniversary on July 22nd, it was announced today. EMLC was the first U.S.-listed ETF to focus on local currency Emerging Markets (EM) bonds and is among the largest U.S. listed EM bond-focused ETFs with $1.2 billion assets under management as of July 25, 2013.
"We believe EM bonds are important in building a well-diversified fixed income investment portfolio," said Fran Rodilosso, fixed income portfolio manager at Market Vectors. "EM bonds and bond funds were among the most affected by the broad global sell-off that took place toward the end of the second quarter. We have recently seen some of these markets recover very quickly. I believe that many local currency-denominated EM bonds continue to deliver more attractive yields, even given the perceived risks, than traditional fixed income investments. Currency and credit fundamentals in many emerging markets also continue to compare very favorably versus developed markets," Rodilosso noted.
Rodilosso discussed EMLC and emerging market debt at greater length in an online interview, available here: EMLC Marks Third Anniversary, featuring Fran Rodilosso.
EMLC is designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by EM 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 June 30, 2013, the Index tracked a selection of bonds issued in 16 different local currencies, including those of Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Philippines, Poland, Peru, Romania, Russia, South Africa, Thailand and Turkey.
EMLC has a gross and net expense ratio of 0.47 percent, which is capped contractually until September 1, 2013. The cap excludes certain expenses, such as interest.
EMLC is one of eight ETFs co-managed by Mr. Rodilosso, who has more than 20 years of experience trading and managing risk in fixed income investment strategies, including 18 years covering emerging markets. In addition to EMLC, Mr. Rodilosso also oversees Emerging Markets High Yield Bond ETF (NYSE Arca: HYEM), Fallen Angel High Yield Bond ETF (NYSE Arca: ANGL), International High Yield Bond ETF (NYSE Arca: IHY), LatAm Aggregate Bond ETF (NYSE Arca: BONO), Investment Grade Floating Rate ETF (NYSE Arca: FLTR), Treasury-Hedged High Yield Bond ETF (NYSE Arca: THHY), and Renminbi Bond ETF (NYSE Arca: CHLC). As of June 30, 2013, the total assets for these ETFs amounted to $1.9 billion.
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 $21.8 billion in assets under management, making it the seventh largest ETP family in the U.S. and tenth largest worldwide as of June 30, 2013.
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 has offices around the world and manages approximately $29.6 billion in investor assets as of June 30, 2013.
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.
Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) is not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of investing in EMLC. J.P. Morgan does not warrant the completeness or accuracy of the J.P. Morgan GBI-EMG Core Index. "J.P. Morgan" is a registered service mark of JPMorgan Chase & Co. © 2013. JPMorgan Chase & Co. All rights reserved.
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 invests in securities denominated in foreign currencies and all of the income received by the Fund will be in foreign currencies, 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.
The "net asset value" (NAV) of an ETF is determined at the close of each business day, and represents the dollar value of one share of the ETF; it is calculated by taking the total assets of an ETF subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as an ETF's intraday trading value. Investors should not expect to buy or sell shares at NAV. Total returns are based upon closing "market price" (price) of the ETF on the dates listed.
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.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise.An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit vaneck.com/etf. Please read theprospectusandsummary prospectuscarefully before investing.
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