Mirae Asset Lists Emerging Market Bond Active ETF on New York Stock Exchange

Primarily Investing in Emerging Market Sovereign and Corporate Bonds... Increasing Returns While Reducing Volatility

[Asia Economy Reporter Minwoo Lee] Mirae Asset has listed an actively managed exchange-traded fund (ETF) investing in US dollar-denominated emerging market bonds on the New York Stock Exchange (NYSE).

Mirae Asset Global Investments announced on the 4th that Global X, a US ETF management company, listed the Global X Emerging Market Bond ETF (EMBD) on the NYSE on the 3rd (local time).

This is the first active ETF launched by Global X. Unlike passive ETFs that track a benchmark index, it seeks to outperform the benchmark index.

The underlying index of this product is the JP Morgan EMBI Global Core Index. It primarily invests in US dollar-denominated emerging market sovereign and corporate bonds to pursue interest income and capital gains. It is explained that, in the long term, it offers higher interest rates compared to developed countries and shows lower volatility compared to high-yield bonds, making it meaningful from an asset allocation perspective.

The EMBD ETF lowers the proportion of government bonds compared to the benchmark index and increases the proportion of public enterprise and corporate bonds. High-risk countries are excluded to reduce the number of investment items. Along with government bonds, it includes corporate bonds with good credit ratings to pursue higher risk-adjusted returns than the benchmark index. Investment weights by country and corporate bond investments are determined considering overall factors such as political, economic, industrial, and regional issues. Although US dollar-denominated emerging market bonds are the main investment target, investment in some local currency bonds is also possible.

Mirae Asset Global Investments (USA), which acquired Global X the year before last, is responsible for advising on the EMBD ETF. Luis Beruga, CEO of Global X, said, "The EMBD ETF is a product that allows easy investment in emerging market bonds while enjoying the advantages of ETFs such as efficiency, transparency, and liquidity," adding, "We will provide an emerging market bond investment solution, a key income asset class, through active management based on Mirae Asset's expertise."