04/04/2012
Van Eck launches an international high yield ETF
With the International High Yield Bond ETF (acronym IHY), Market Vectors ETF Trust (Van Eck) claims to have launched the first ETF available in the United States to be focused on international (non-US) high yield bonds. The fund aims to replicate the performance of the BofA Merrill Lynch Global Ex-US Issuers High Yield Constrained Index (HXUS) as nearly as possible before fees. The index covers bonds which are not in the investment grade, issued by businesses domiciled outside the United States. But these bonds may be denominated in major currencies (euros, US dollars, Canadian dollars and pounds Sterling). As of 27 March, the index included 1,008 issues from 546 companies in 69 countries (33% of this emerging market debt).In addition to delivering a yield to worst of 8.3%, these securities performed 1.2 percentage points better than those of US high yield bonds in the BofA Merrill Lynch US High Yield Master II index.The new fund, which is the 46th ETF of the Market Vectors brand, has a TER capped to 0.40% until at least 1 September 2013.
