On Wednesday, July 27, Van Eck filed paperwork with the Securities and Exchange Commission seeking permission to launch an ETF offering exposure to so-called "dim sum bonds," which are bonds denominated in Chinese yuan but sold in Hong Kong.
If launched, the proposed Market Vectors Dim Sum Bond ETF would be the latest entry in the marketplace of locally denominated, emerging-markets bond ETFs, a field that has drawn considerable investor interest in recent months as investors seek to benefit from potentially rising emerging-markets currencies. Up to now, investors interested in Asian debt have been able to consider WisdomTree Emerging Markets Local Debt (ELD) and Market Vectors Emerging Markets Local Currency Bond ETF (EMLC), along with the Asian-only WisdomTree Asia Local Debt (ALD) as well. Recently, however, a variety of ETF providers has begun proposing more targeted ETFs, drawing up plans for funds that would hold yuan-denominated government and corporate debt.
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Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.