Horizons ETFs launches emerging markets bond ETF

Horizons ETFs Management Inc. has launched the Horizons Active Emerging Markets Bond ETF. Units of the fund began trading Wednesday on the Toronto Stock Exchange.

The ETF seeks to generate income and long-term capital growth by investing primarily in fixed- and floating-rate debt securities of emerging market issuers—a market segment that has strengthened in recent years and still offers higher yields than North American bonds, says Horizons ETFs in a release.

The fund is subadvised by Fiera Capital Corporation and Mirae Asset Global Investments.

Fiera oversees the portfolio strategy of the ETF’s global asset allocation and selection of sovereign bonds. The target mix for sovereign and quasi-sovereign bonds in the ETF portfolio is initially about 80%.

The target mix for the fund’s corporate credit portfolio, overseen by Mirae, is initially about 20%.

All U.S.-dollar currency exposure is hedged back to Canadian dollars.

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