Exchange-traded fund (ETF) provider iShares has added the Barclays Capital Emerging Market Local Government Bond fund to its fixed income range of products.

The ETF will give investors access to fixed-rate debt of emerging market governments, denominated in their local currencies.

The new launch is the forty-third European fixed income product and will be listed on the London Stock Exchange.

Axel Lomholt, head of product development for iShares Europe, Middle East & Africa, said there had been a sustained demand for local currency emerging market bonds.

Lomholt said the high yield of the bonds and the currency potential were important factors in the current level of demand.

The product will have a total expense ratio of 0.5 per cent.

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