Market Vectors EM Local Currency Bond ETF Tops $500M In AUM

The Market Vectors Emerging Markets Local Currency Bond ETF EMLC, the first ETF designed to give investors exposure to emerging markets bonds denominated in local currencies, has surpassed the $500 million in assets under management level, according to a statement issued by Van Eck Global today. Just a few days removed from its first anniversary (EMLC debuted on July 22, 2010), it is obvious the ETF has proved popular with investors. According to the Market Vectors Web site, EMLC now has $512.8 million in AUM along with an expense ratio of 0.49%. EMLC's volume has averaged nearly 175,400 shares per day for the last three months, also a sturdy number for a new ETF. Year-to-date, EMLC is up 4.3%. The ETF has also proven popular with income investors. Since its launch, EMLC has paid monthly dividends and as of July 29, had a 30-day SEC yield of 6.1%, according to the statement issued by Van Eck Global. As Van Eck notes in the statement, the U.S. debt ceiling debate underscores the notion that developed world debt is far from immune to negative fundamentals, but many emerging markets have been working diligently to see their credit ratings boosted. EMLC offers exposure to wide swath of emerging markets as the index it tracks currently follows bond issues from Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Thailand and Turkey. EMLC is one of eight bond ETFs offered by Market Vectors. The firm had 35 ETFs trading at the end of July with $24.2 billion in AUM, according to data from the National Stock Exchange.