BlackRock's iShares [profile] unit is working on an actively-managed, sovereign fixed income exchange-traded fund for launch sometime this year [filing]. IndexUniverse picked up on the filing, which iShares submitted on Monday.

iShares offered no timing specifics, ticker, or expense ratio for the planned ETF, called the iShares Sovereign Screened Global Bond Fund.

IndexUniverse noted that, like the fundamentally-weighted WisdomTree Emerging Markets Local Debt Fund, iShares' planned ETF could escape the pitfalls of traditional bond fund benchmarks by avoiding the pitfalls of market-capitalization-weighted passive sovereign bond investing, which piles up on the debt of the biggest issuers, i.e. the most indebted countries. 

Edited by: HFD


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