New BONO ETF Has Undocumented Foreign Currency Exposure

Van Eck last Thursday (5/12/11) launched the Market Vectors LatAm Aggregate Bond ETF (BONO), claiming it is the first U.S.-listed ETF offering exclusive exposure to Latin America’s debt markets.  The new ETF will try to replicate the BofA Merrill Lynch Broad Latin America Bond Index using a 4% sampling technique. The underlying index is composed of external and local currency Latin American sovereign debt, and the external debt of non-sovereign Latin American issuers denominated in USD or Euros.  The index consists of debt that is 64.3% sovereign issued, 33.8% corporate, and 1.9% quasi-governmental. When buying a foreign debt fund, investors want to know the issuers, quality, yield, and currency exposure of the overall fund.  Van Eck fails on half of . . . → Read More: New BONO ETF Has Undocumented Foreign Currency Exposure