Source and Pimco partner to list EM bond ETF

Source and Pimco have added to their range of joint ETFs with the listing of the Pimco Emerging Markets Advantage Local Bond Index Source ETF.

The ETF offers diversified exposure to emerging markets, selected according to gross domestic product (GDP) and a country's ability to service its debt.

This differs from traditional bond ETFs, which tend to track indices weighted according to past debt issuance.

The Pimco Source ETF is designed to give exposure to countries with strong fundamentals, with signification allocation to economies such as China and India.

The fund is listed on the London Stock Exchange but it is also registered for sale in Germany, Ireland, Luxembourg, Norway and Sweden and is in the process of being passported to other jurisdictions including France and Italy.

This is the fifth ETF which Source has launched in partnership with Pimco after the two companies joined forces in February this year to list actively managed fixed income ETFs.