LEMB Profile
The iShares J.P. Morgan EM Local Currency Bond ETF aims to provide investors with exposure to local currency-denominated sovereign bonds from emerging market countries. To achieve its investment objective, the fund will allocate at least 80% of its assets to the securities that comprise its benchmark index. Additionally, the fund will invest at least 90% of its assets in fixed income securities similar to those in the index, as determined by BlackRock Fund Advisors (BFA). This strategy is designed to closely track the performance of the underlying index.
The underlying index tracks the performance of sovereign bonds issued by emerging market governments, denominated in local currencies. By focusing on local currency bonds, the ETF aims to capture the yield and potential appreciation associated with bonds from emerging markets, which often offer higher yields compared to developed market bonds. This investment approach provides exposure to the credit risk and economic growth potential of these emerging economies.
The fund's strategy allows it to benefit from the potential growth and development of emerging market countries, whose economies may experience faster growth compared to developed markets. However, investing in local currency bonds also exposes the fund to currency risk, as fluctuations in local currencies against major currencies can impact returns. Despite this risk, the fund aims to deliver attractive returns by capitalizing on the higher yields and economic potential of emerging market sovereign bonds.
Managed by iShares, a division of BlackRock, the ETF benefits from the firm's extensive expertise in fixed income investing and emerging markets. iShares is known for its comprehensive range of exchange-traded funds and its ability to deliver effective and efficient investment solutions. The iShares J.P. Morgan EM Local Currency Bond ETF is particularly suited for investors seeking diversified exposure to emerging market debt and who are willing to assume currency and credit risk in exchange for the potential of higher returns.
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