State Street Global Advisors Enhances Fixed Income SPDR® Suite With Emerging Markets USD Bond ETF
State Street Global Advisors has launched the SPDR Bloomberg Barclays Emerging Markets USD Bond ETF (EMHC) to offer exposure to US dollar-denominated debt from emerging market issuers. This fund aims to provide investors with income and diversification due to emerging market debt's low correlation with other global bond sectors. EMHC targets the Bloomberg Barclays Emerging USD Bond Core Index and excludes low-rated bonds. The ETF complements existing emerging market debt products, meeting client demand for a cost-effective investment in emerging market debt while minimizing local currency depreciation risks.
- Launch of SPDR Bloomberg Barclays Emerging Markets USD Bond ETF (EMHC) enhances product offerings.
- Provides exposure to US dollar-denominated debt from emerging markets, catering to growing investor demand.
- None.
State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SPDR Bloomberg Barclays Emerging Markets USD Bond ETF (EMHC). The fund was developed to provide exposure to US dollar-denominated debt issued by sovereign and quasi-sovereign emerging market issuers. EMHC may provide investors with an attractive source of income and diversification benefits due to emerging markets debt’s low historical correlation to other global bond sectors.1
“With yields relatively low across US bond markets, investors are increasingly looking elsewhere to generate income,” said Sue Thompson, head of SPDR Americas Distribution at State Street Global Advisors. “Emerging market debt has seen solid growth over the last decade, however, we believe many investors may be under-allocated to this asset class. EMHC provides a convenient and cost-effective means to access emerging market debt while guarding against short-term fluctuations in the dollar.”
The SPDR Bloomberg Barclays Emerging Markets USD Bond ETF seeks to track the Bloomberg Barclays Emerging USD Bond Core Index. This index measures the performance of fixed-rate US dollar-denominated debt issued by sovereign and quasi-sovereign (government owned and government guaranteed) emerging market issuers. It includes bonds with a minimum par outstanding amount of
“The SPDR Bloomberg Barclays Emerging Markets USD Bond ETF complements our existing lineup of emerging market debt ETFs, which includes the SPDR Bloomberg Barclays Emerging Markets Local Bond ETF (EBND) and the actively managed, SPDR DoubleLine Emerging Markets Fixed Income ETF (EMTL),” said Noel Archard, global head of SPDR product at State Street Global Advisors. “EMHC meets demand from clients who are attracted to the benefits of emerging market debt but concerned about the potential impact of local currency depreciation.”
For more information on the SPDR ETF suite, visit www.ssga.com/etfs.
| 1 | Factset Period: 02/28/2011-02/28/2021. The Bloomberg Barclays EM USD Sovereign + Quasi-Sovereign Index has a correlation of 0.47 to the Agg and 0.66 to the Global Agg. |
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*This figure is presented as of December 31, 2020 and includes approximately
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3484915.1.1.AM.RTL Exp. Date: 04/30/2022
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FAQ
What is the SPDR Bloomberg Barclays Emerging Markets USD Bond ETF (EMHC)?
What index does the EMHC ETF track?
What are the investment benefits of EMHC?
When was the EMHC ETF launched?
What are the criteria for bonds included in the EMHC ETF?
