WisdomTree Files For International Corporate Bond ETF
WisdomTree (NASDAQ: WETF), the only publicly trade pure-play ETF sponsor, has filed plans with the Securities and Exchange Commission to possibly introduce a fund comprised of global corporate bond funds. The WisdomTree Global Corporate Bond Fund will be actively managed and likely list on the Nasdaq, according to the filing.
The fund will invest in foreign debt denominated in U.S. dollars and local currencies. The ETF will look to gain exposure to debt from the following regions and countries: North America, South America, Asia, Australia and New Zealand, Latin America, Europe, Africa and the Middle East. The Fund may, however, invest up to 25 percent of its assets in emerging market countries, though this may change from time to time, according to the filing.
Aggregate portfolio duration is expected to be limited to two to 10 years. The fund will hold both investment-grade and high-yield debt. According to the filing, the breakdown is expected to be 55 percent in favor of investment-grade issues and 45 percent allocated to junk bonds.
WisdomTree is one of the top purveyors of internationally-focused actively managed bond ETFs. The $1.37 billion WisdomTree Emerging Markets Local Debt Fund (NYSE: ELD) was the first actively managed ETF to eclipse $1 billion in assets under management while the WisdomTree Asia Local Debt Fund (NYSE: ALD) has proven successful in its own right. ALD is just 20 months old and already has over $432 million in AUM.
The WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: EMCB), another actively managed product, has proven to be one of 2012's most successful new ETFs. EMCB debuted in March and already has over $87.5 million in AUM.
The filing for the new ETF did not include a ticker or expense ratio.
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