New York-based investment house VanEck has launched a pair of high-yield corporate bond exchange-traded funds (ETFs) on the London Stock Exchange.
The VanEck Vectors Global Fallen Angel High-Yield Bond Ucits ETF aims to enable investors to benefit from temporary price distortions as a result of credit rating downgrades.
Meanwhile, the VanEck Vectors Emerging Markets High-Yield Bond Ucits ETF offers investors access to high-yield corporate bonds from emerging markets.
“The market for high-yield bonds from emerging markets is becoming increasingly efficient. In the past few years alone, the volume on the market has doubled and is expected to continue to grow,” said Dominik Poiger, ETF portfolio manager at VanEck.
“Emerging markets high-yield bonds are thus an attractive asset class for the long-term, offering a similarly high yield to US high-yield bonds, but with a lower duration and better credit rating.”
Both funds are domiciled in Ireland and have a total expense ratio of 0.40%.
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