PowerShares announced through a press release that it plans to launch in October an Emerging Markets Sovereign Debt exchange-traded fund that is based on the soon to be launched DB Emerging Markets USD Liquid Balanced Index.
The index will track the performance of a select basket of liquid emerging market U.S. dollar-denominated government bonds. Countries eligible for inclusion in the DB Emerging Markets USD Liquid Balanced Index will be re-evaluated annually. Membership will be optimized on a quarterly basis based on ratings, size, liquidity and other considerations.
This fixed-income innovation from PowerShares is for investors who seek a convenient, low-cost approach to investing in a portfolio of emerging markets sovereign debt securities. The portfolio may be suitable for long-term investing, and may also be used as an asset allocation and a risk-control tool.