Wisdomtree Emerging Markets Corporate Bond ETF (EMCB), Investment Fund Ad Review

Investing in Wisdomtree Emerging Markets Corporate Bond ETF Fund (EMCB) provides opportunity for diversification.

Emerging Markets Investment

Multiple ETF funds or exchange traded funds have been introduced for investors or traders. The exchange traded fund may track various indices such as U.S. stock (S&P 500), international stock, corporate bond, municipal bond and many more. Some ETFs are actively managed and mimicking mutual fund. Find the right ETF to invest needs understanding and lot of research.

One of these ETF funds is Wisdomtree Emerging Markets Corporate Bond ETF Fund (EMCB). WisdomTree has provided an Ad in various financial newspaper or magazine. Find this ETF fund review below. I have provided the details such as expense ratio, yield, etc.

The details of investment ad are as follows:

Emerging Markets + Corporate Bonds = EMCB 

EMCB: The First Emerging Markets Corporate Bond ETF.

Built by Wisdom Tree. Sub-advised by Western Asset Management Company. 

EMCB provides a new way to access emerging market debt – and can help investors achieve more complete emerging market diversification. Only WisdomTree brings you access to emerging market corporate bonds – and a leading institutional fixed income manager – in an ETF.

For more information about this thoughtful innovation from WISDOMTREE, visit wisdomtree.com

Western Asset | Wisdom Tree 

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. Obtain a prospectus containing this and other important information at wisdomtree.com. Read the prospectus carefully before you invest.

ETF Fund Review

The investment in EMCB fund seeks a high level of total return consisting of both income and capital appreciation. It invests majority of its net asset in corporate debt of emerging markets. This debt fund just been introduced in March 2012, thus it has no ratings from Morningstar yet. It has total net assets of $114.30 million. The 12-month yield is 4.37%. It is currently traded at discount -0.18% from its NAV. The annual expense ratio is 0.60%.

This WisdomTree Emerging Markets Corporate Bond ETF fund has YTD return of -2.52%. Since inception, this bond fund has returned 3.95% comparable to the market price returns of 3.92%. The average yield to maturity is 5.15%. It also has an effective duration of 5.68 years. It uses JP Morgan CEMBI Broad Composite Index as the benchmark.

The top sector breakdown as of October 2013 is Oil (31.59%). Russia (30.69%) and Brazil (22.14%) are the top country allocation. As of September 2013, the top 5 stocks in its holdings are Petrobras International Finance Co (4.97%), Vimpelcom Holdings (4.17%), Digicel Group Ltd (4.14%), Cent Elet Brasileiras Sa (3.97%) and Vale Overseas Ltd (3.69%).

Investing Opinion

• This WisdomTree Emerging Markets Corporate Bond ETF has low expense ratio and high yield for income.
• It has higher volatility than typical bond fund
• There is still lack of historical performance to judge how it will perform against its benchmark, but WisdomTree has been pioneer in providing innovative ETFs.