JP Morgan launches new emerging markets sovereign bonds ETF on Xetra

JP Morgan has launched a new ETF allowing investors to participate in the performance of emerging market government and quasi-government bonds denominated in US dollars.

The JPMorgan ETFs (Ireland) ICAV - Emerging Markets Sovereign Bond UCITS ETF - USD (acc) has listed on Xetra and Börse Frankfurt.

Issuers that are 100 per cent collateralised or owned by the national government are considered quasi-governmental.

The benchmark index is the JP Morgan Emerging Markets Risk-Aware Bond Index.

The focus here is on a reduced risk exposure, whereby index countries with high holdings of debt securities are weighted less. In addition, the securities must have a minimum remaining term of two years and an outstanding volume of one billion US dollars for inclusion in the index. Both fixed and floating rate bonds are taken into account.