Thursday, December 20, 2007
Just as Bobby Petrino left Atlanta under cover of darkness so too did two very interesting ETFs get quietly listed today.
The first is iShares JP Morgan USD Emerging Market Bond Fund (EMB) with a hat tip to 24/7 Wallstreet.
Based on the name I infer that the bonds are dollar denominated like the similar PowerShares product (PCY).
The average coupon is 7.76% but the average price, assuming that means price paid is over $110 so the yield is probably in the sixes and in fact I found an average yield to maturity of 6.29% on the iShares page but can't vouch for that.
EMB is heaviest in Brazil, Russia, Turkey and Venezuela with ten countries in all.
The other fund is the PowerShares S&P 500 Buy Write Portfolio (PBP) with a hat tip to me as I found it on the home page when I went to compare EMB to PCY. I exchanged emails with someone at PowerShares about this fund a week or two ago and was told it is an ETF (as opposed to the ETN from Barclays) and it will pay a dividend.
I am excited (wow I am a nerd) about both of them. I will say easy does it on PBP for a while. While I am sure this is wrong, this strikes me as a candidate for having unintended consequences. I really do hope I am wrong as I would like to use it but it will need to prove itself before I do.