The new ETF offers index-based exposure to emerging-market bonds offered in local currencies
Mackenzie Investments has announced the launch of Mackenzie Emerging Markets Local Currency Bond Index ETF.
Calling it the first of its kind in Canada, the firm said it seeks to provide Canadian investors with the opportunity to access strong growth and diversification from investing in emerging markets.
“Improved debt dynamics within emerging countries, and a positive long-term outlook for emerging markets as a whole, combine to make this asset class a particularly attractive one for investors seeking to diversify and grow their portfolios," said Michael Cooke, senior VP and head of ETFs, Mackenzie Investments.
Trading on the TSX under the ticker symbol QEBL, the ETF seeks to replicate the performance of the Solactive EM Local Currency Government Bond Select NTR Index. Through local currency exposure, it provides strong diversification opportunities; Cooke noted that almost 90% of emerging market bonds, totalling an estimated US$21.6 trillion, are denominated in local currency.
With a management fee of 0.45%, the fund is among the lowest-cost offerings among Canadian-domiciled emerging markets bond ETFs.
