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. 

Written By Kevin Grewal From ETF Tutor  Disclosure: No Positions

Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor’s degree from the University of California along with a MBA from the California State University, Fullerton. He is a contributing author on The Street – his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville.

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