Van Eck last Thursday (5/12/11) launched the Market Vectors LatAm Aggregate Bond ETF (BONO), claiming it is the first U.S.-listed ETF offering exclusive exposure to Latin America?s debt markets. The new ETF will try to replicate the BofA Merrill Lynch Broad Latin America Bond Index using a 4% sampling technique.
The underlying index is composed of external and local currency Latin American sovereign debt and the external debt of non-sovereign Latin American issuers denominated in USD or euros. The index consists of debt that is 64.3% sovereign issued, 33.8% corporate, and 1.9% quasi-governmental.
When buying a foreign debt fund, investors want to know the issuers, quality, yield and currency exposure of the overall fund. Van Eck fails on half of these items by providing no indication regarding the yield or currency exposure (summary page).
The marketing literature fails to supply the currency exposure of either the fund or the index.
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SI INTERNATIONAL SEAGATE TECHNOLOGY SCIENTIFIC GAMES SANDISK SALESFORCE COM
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