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PowerShares Launches Fundamentally Weighted, Emerging-Markets Bond ETF

Global X to implement reverse share splits on 6 ETFs, WisdomTree drafts a managed distribution S&P 500 ETF, and Arrow draws up plans for a global high-yield bond fund. Plus, the week's best- and worst-performing ETFs.

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On Thursday, May 9, PowerShares rolled out an exchange-traded fund devoted to locally denominated debt issued in emerging-markets countries.

In recent years, investors have been drawn to locally denominated, emerging-markets debt ETFs, which offer higher yields relative to developed-markets debt ETFs while at the same time providing exposure to local currencies and the benefit of any strengthening of those currencies relative to the dollar. The most popular ETF in the space is  WisdomTree Emerging Markets Local Debt (ELD), with other large and liquid options being Market Vectors Emerging Market Local Currency Bond ETF (EMLC) and iShares Emerging Markets Local Currency Bond (LEMB).

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Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.