Actively Managed Emerging Markets Bond ETF Launching

An actively managed emerging markets bond ETF is about to launch bringing further diversity to the bond ETF offerings currently available.  Grail Advisors LLC is partnering with DoubleLine Capital LP to launch the ETF soon.  The bond ETF will be managed by Los Angeles based DoubleLine’s emerging markets fixed income team and include an operating expense of 95 basis points.  The ETF will be the first for DoubleLine which will invest in corporate debt.  Grail is looking to launch more custom, actively managed ETF’s in the coming years.  It launched its first ETF in 2009 and currently provides seven offerings.  While actively managed ETF’s are increasing in popularity, it’s going to be tough for Grail to make a name for itself and provide ETF’s with liquidity.  Two of its ETF’s which launched more than six months ago, the Intermediate Municipal Bond ETF (GMMB) and the Core Taxable Bond ETF (GMTB), trade less than a couple thousand shares a day.  An ETF like that is basically worthless.