EBND Profile
The SPDR Bloomberg Emerging Markets Local Bond ETF aims to provide investors with exposure to the performance of sovereign debt issued in local currencies by emerging market countries. The fund typically invests at least 80% of its total assets in the securities that compose the index, as well as in securities that the Adviser or Sub-Adviser deems to have similar economic characteristics to those in the index. This strategy ensures a high degree of alignment with the underlying benchmark.
The index tracked by the fund is specifically designed to gauge the performance of fixed-rate, local currency government bonds from emerging markets. These bonds are issued by sovereign governments in various developing countries and are denominated in the local currency of the issuing country. The index provides a comprehensive view of the local currency bond market in emerging economies, reflecting both yield and price performance.
The fund's investment approach focuses on the sovereign debt of emerging market nations, which typically offer higher yields compared to developed markets due to their higher risk profiles. By investing in these bonds, the fund seeks to capture the potential benefits of higher interest rates and growth prospects in emerging markets, while also gaining exposure to the broader economic developments within these countries.
As a non-diversified fund, the SPDR Bloomberg Emerging Markets Local Bond ETF concentrates its investments in a specific segment of the fixed income market. This concentrated approach allows investors to target the unique opportunities within emerging market local currency bonds, but it also entails higher exposure to market volatility and credit risk associated with these regions. The fund's focus on local currency debt means that it is also subject to currency risk relative to the U.S. dollar.
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