3 New Bond ETFs Debut Tuesday (IHY, EMHY, EMCB)

BlackRock's BLK iShares unit, the world's largest ETF sponsor, will continue its torrid pace of new bond fund introductions on Tuesday when the firm rolls out two new ETFs. And despite the recent controversy surrounding the IPO for BATS Global Markets, iShares will add to its lineup on BATS by listing the two new ETFs there. The iShares Emerging Markets High Yield Bond Fund EMHY will track the Morningstar Emerging Markets High Yield Bond Index. Eligible securities must have outstanding face value of at least $500 million. The index includes bonds issued by corporations, sovereignties and quasi-sovereign corporations, according to ETF Daily News. Bonds included in the index must be dollar-denominated and have a rating of BB+ or lower. Countries included in the index as of early much were the following: Argentina, Belarus, Brazil, China, Dominican Republic, Ecuador, Egypt, El Salvador, Hong Kong, Hungary, India, Jamaica, Kazakhstan, Latvia, Lebanon, Mexico, Pakistan, Philippines, Russia, Serbia, South Korea, Sri Lanka, Turkey, Ukraine, the United Arab Emirates, Uruguay, Venezuela and Vietnam. Industry components were energy and industrials. EMHY will have an expense ratio of 0.65%. iShares will also introduce the iShares Global ex USD High Yield Corporate Bond Fund HYXU. That fund will track the Markit iBoxx Global Developed Markets ex-US High Yield Index. That index is comprised of 194 high yield corporate bonds denominated in Euros, British pounds sterling and Canadian dollars. HYXU will have an expense ratio of 0.55%. Van Eck, parent company of Market Vectors and the fifth-largest U.S. ETF issuer, will introduce the Market Vectors International High-Yield Bond ETF IHY. The new Market Vectors fund will compete with HYXU as it will also feature non-U.S. issues denominated in Euros, U.S. dollars, Canadian dollars or pound sterling issued in the major domestic or Eurobond markets. It is anticipated IHY will pay a monthly dividend. The Market Vectors offering will have an advantage over of its iShares rival: An expense ratio of 0.4% that's capped until September 2013. IHY will be Market Vectors' 46th ETF. Two of the most successful new bond ETFs of 2012 appear to be the WisdomTree Emerging Markets Corporate Bond Fund EMCB, which isn't even a month old and has almost $60 million in assets under management, and the Pimco Total Return ETF TRXT. The Total Return ETF, which will change its ticker to "BOND" on Thursday, has $277.1 million in AUM in barely more than a month of trading.