After a busy first half of 2012, the past few months have brought relatively few new exchange-traded funds (ETFs) to the market. On January 31, WisdomTree broke the silence with its launch of the WisdomTree Global Corporate Bond ETF, which trades under the ticker GLCB.
The fund is unique in that it's actively managed (as opposed to being tied to an index) and it can invest in U.S., developed-market international, and emerging market bonds in both the investment grade and high yield categories. This provides investors with a way to access a wide variety of market segments in a single portfolio. Also, while no yield figure is available yet, this fund is likely to offer a yield higher than the typical bond ETF. The fund employs a currency hedging to eliminate the impact of currency fluctuations on the fund's performance.
While it's always wise to give new funds a chance to establish a track record before jumping in, the WisdomTree Global Corporate Bond ETF is one to watch for investors who are looking for a way to generate higher investment income in this low-yield environment.