WisdomTree, an exchange-traded fund sponsor and asset manager, has launched the WisdomTree Emerging Markets Local Debt Fund on the NYSE Arca.

The fund is designed to provide exposure to emerging market debt denominated in local currencies and has an expense ratio of 0.55 per cent.

The fund currently has USD125m in assets.

It is an actively managed ETF sub-advised by Mellon Capital Management.

"We believe emerging market debt is an attractive asset class, based on the faster growth and typically higher yields available in these countries relative to the US and developed world," says Bruce Lavine, WisdomTree president and chief operating officer. "ELD will offer full exposure to local currencies, a feature we consider important for many investors because of the potential lower correlations and currency appreciation against the US dollar."