Toronto-based Mackenzie Investments introduced the Mackenzie Emerging Markets Local Currency Bond Index ETF on Thursday.
The new exchange-traded fund (ETF) gives investors the opportunity to access growth and diversification in emerging markets through local currencies, and is the first of its kind in Canada, the firm said in a release.
The ETF carries a management fee of 0.45% and begins trading on the Toronto Stock Exchange today. It aims to mimic the performance of the Solactive EM Local Currency Government Bond Select NTR Index.
Michael Cooke, senior vice-president and head of ETFs at Mackenzie Investments, said in the release that the ETF will provide strong investment opportunities for investors, given that almost 90% of emerging market bonds are denominated in local currency.
Further, “Improved debt dynamics within emerging countries, and a positive long-term outlook for emerging markets as a whole, combine to make this asset class a particularly attractive one for investors seeking to diversify and grow their portfolios,” he said.