BlackRock Launches Euro-Denominated EM Bond Product While Already Offering Europe’s Largest US Dollar-Denominated EM Bond ETF
BlackRock has launched the first Euro-denominated Emerging Market Government Bond ETF.
The iShares JP Morgan € EM Bond UCITS ETF (EB3M) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.35%.
EB3M tracks the JP Morgan Euro EMBI Global Diversified Index which has a basket of government bonds issued by sovereign and quasi-sovereign entities with at least two and a half years to maturity at the time of inclusion.
BlackRock said it expects emerging market debt to play a bigger role in investor portfolios in 2021 as investors seek ETFs for greater diversification in tough times for fixed income traditional.
This was reflected in the popularity of BlackRock’s iShares China CNY Bond UCITS ETF, which has seen inflows of $ 1.7 billion since the start of the year through April 6, according to ETFLogic data. , as investors continue to rotate away from Western fixed income securities due to rising inflation fears.
BlackRock currently owns the largest US dollar denominated emerging market government bond ETF in the market, the $ 10.7 billion iShares JP Morgan $ EM Bond UCITS ETF (SEMB).
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