WisdomTree Files For Actively Managed Emerging Market Bond ETFs

In an attempt to broaden its horizons, ETF provider WisdomTree Investments, recently filed paperwork with the Securities and Exchange Commission to provide actively managed emerging market bond ETFs.

According to the filing, the first ETF of the proposed three, would be the WisdomTree Asia Bond Fund,  which seeks to offer broad exposure to Asian government and corporate bonds.  Furthermore, the fund intends to invest in fixed income securities denominated in the local currency of countries in Asia.  Particularly, the fund is expected to focus its investments in China, Hong Kong, India, Indonesia, South Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. 

The second ETF is expected to be the WisdomTree Latin American Bond Fund, which is designed to provide broad exposure to Latin American government and corporate bonds through numerous investments in a range of instruments with varying credit risk and duration.   Additionally, the fund intends to invest in fixed income securities denominated in the local currencies of countries in Latin America as well as provide broad-based exposure to the region’s bond markets through investing in both investment and non-investment grade securities.

The last proposed active fixed income ETF is the WisdomTree EMEA Bond Fund, which seeks to give investors exposure to fixed income in securities in Europe, the Middle East and Africa.  To be more specific, the fund expects to focus on the Czech Republic, Egypt, Hungary, Israel, Poland, Qatar, Romania, Russia, Slovakia, South Africa, Turkey, and United Arab Emirates.  The fund is expected to invest in both investment and non-investment grade securities issued by the governments in the EMEA regions as debt instruments issued by corporation in the region. 

As developed economies continue to struggle to show signs of economic growth, bolstering the appeal of emerging markets, these ETFs are likely to attract assets once they start trading. 

Disclosure: No Positions

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