On Aug. 23, ProShares submitted paperwork with U.S. regulators seeking permission to create a passively managed exchange-traded fund that would hold emerging-markets debt.
The proposed ProShares Short Term USD Emerging Markets Bond ETF would be the U.S. ETF market's first short-duration, emerging-markets bond ETF. The proposed fund would hold U.S. dollar-denominated, emerging-markets debt with less than five years until maturity, issued by emerging-markets governments and corporations. Debt held would be required to be fixed-rate and need to have at least 18 months until maturity. The proposed fund's index would allow both investment-grade and high-yield debt but would exclude zero-coupon, inflation-linked, and convertible bonds.