Market Vectors Rolls Out LatAm Aggregate Bond ETF
Van Eck, parent company of Market Vectors and the sixth-largest U.S. ETF issuer, introduced the Market Vectors LatAm Aggregate Bond ETF (NYSE: BONO) today, the 34th ETF in the Market Vectors lineup.
With an expense ratio of 0.49%, BONO will track the BofA Merrill Lynch Broad Latin America Bond Index (LATS), an index comprised of government and corporate debt denominated in U.S. dollars, euro and local currencies from Latin American issuers.
At the end of April, the Index had 453 holdings with the following country weights: Brazil 36.52%, Mexico 29.03%, Colombia 12.19%, Venezuela 6.50% and Argentina 4.17%. Issues from Chile, Peru, Panama, Jamaica and Uruguay are also featured in the ETF. All of the index holdings have investment grade ratings.
BONO's average yield-to-worst is 7.24% with an average years to maturity of almost nine years and an average coupon of 7.97%.
“BONO, complements the Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: EMLC), allowing investors the opportunity to diversify their fixed income portfolio outside of the United States. With U.S. interest rates near all‐time lows, income‐oriented investors may wish to expand their search to countries with higher yields,” said Ed Lopez, Director of Marketing at Van Eck, in a statement.
BONO is the eighth Market Vectors bond ETF and Van Eck notes that Latin American bonds currently sport comparable yields to U.S. corporate high-yield issues. Van Eck had about $23 billion in ETF assets under management at the end of April.
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