SPDR Bloomberg Emerging Markets Local Bond

ETF description

This ETF focuses on bonds issued by governments in emerging market countries. These bonds are denominated in the local currencies of the issuing countries rather than in a major global currency like the US dollar or the euro. Because of this, the value of the ETF can be influenced by exchange rate movements between these local currencies and other global currencies.

This ETF may appeal to investors who are looking for exposure to government bonds outside of developed markets and who are willing to accept the potential ups and downs that come with currency movements and emerging market economies.

Issuer details

SPDR ETFs (Standard & Poor’s Depositary Receipts), managed by State Street Global Advisors, are among the largest and most recognized ETFs in the world, with over $1 trillion in assets under management as of June 2024. SPDR offers a broad range of ETFs covering various market segments, including equities, fixed income, sector‑specific funds, commodities, and ESG (Environmental, Social, Governance) investments. Launched in 1993 with the SPDR S&P 500 ETF (SPY), the first ever ETF, SPDR ETFs are known for their strong emphasis on liquidity, transparency, and robust research and analysis. Notable ETFs in their lineup include the SPDR S&P 500 ETF (SPY), SPDR Gold Shares (GLD), and SPDR Bloomberg Barclays High Yield Bond ETF (JNK), reflecting SPDR’s commitment to providing diverse and high‑quality investment options to meet the needs of various investors.

Index details

The Bloomberg EM Local Currency Liquid Government Bond Index is a country‑constrained index designed to provide a broad measure of the performance of liquid local currency emerging markets debt. It limits country exposure to a maximum of 10% and redistributes the excess market value index‑wide on a pro‑rata basis. To be included in the index, securities must have an amount outstanding of at least US$1 billion equivalent.