Vanguard has expanded its exchange-traded fund (ETF) range with the launch of an emerging markets government bond product.
The Vanguard USD Emerging Markets Government Bond ETF, which is listed on the London Stock Exchange, will offer exposure to investment-grade, US dollar-denominated debt issued by governments in the space.
The fund, which has a sterling-denominated option, has an ongoing charges figure of 0.25 per cent and will track the Bloomberg Barclays USD Emerging Markets Sovereign and Quasi Sovereign index.
Andreas Zingg, head of ETF distribution management for Europe at the asset manager, said: "Following the US election and increased speculation on the possibility of a US rate hike, emerging market bonds have been in the headlines. In our view, investors should continue to keep a long-term perspective.
“As part of a balanced portfolio, bonds provide an important source of diversification, helping to stabilise returns over the long term. Investors can maximise this effect by also diversifying within their fixed income allocations."
Vanguard now offers 22 Irish-domiciled Ucits ETFs in the UK, with some $120bn (£95.3bn) in assets under management across its European mutual fund and ETF range.
