Barclays Introduces Emerging Markets Bond ETF

December 19, 2007

SAN DIEGO (ETFguide.com) -  No holiday vacation for the burgeoning exchange-traded fund (ETF) business.

Barclays Global Investors (BGI) has launched the iShares JPMorgan USD Emerging Markets Bond Index Fund (ticker: EMB).  

The new fund is designed to track the JPMorgan EMBI Global Core Index, which represents debt obligations issued in U.S. dollars (USD) by sovereign and quasi-sovereign entities of emerging market countries. Its annual expense ratio is 0.60%.

The new fund rounds out the fixed income iShares fund family, which includes US Treasury, municipal, mortgage, and US investment grade and high yield corporate sectors.

"The iShares JPMorgan USD Emerging Markets Bond Index Fund will offer easy-to-access and transparent exposure to a market that has been mostly confined to institutional investors," said Michael Latham, Head of Americas iShares for Barclays Global Investors. He added, "USD emerging market debt can act as a diversifier in a fixed income portfolio. It has historically offered higher yields relative to other sectors of the fixed income market, and may offer an opportunity for capital appreciation if these markets continue to further develop."

Earlier in the month, BGI introduced the iShares MSCI EAFE Small Cap Index Fund (ticker: SCZ), the iShares MSCI Kokusai Index Fund (ticker: TOK) and the iShares S&P Global Infrastructure Index Fund (IGF).

All of the funds have an international focus and offer exposure to developed small cap stocks, global infrastructure, and developed markets outside of Japan.

With regard to annual expense ratios, SCZ charges 0.40%, TOK charges 0.25%, and IGF charges 0.48%.

All of the new ETFs are listed on the NYSE Arca.

Of the 149 total iShares traded in the U.S., 55 ETFs have an international focus.