California-based investment management giant PIMCO and Source, a specialist provider of exchange-traded products, have launched the PIMCO Emerging Markets Advantage Local Bond Index Source ETF.

The fund aims to offer diversified exposure representative of the countries driving emerging markets growth. The underlying index bases country allocation on national GDP and the capacity of each to service its debt.

“Unlike traditional debt market capitalisation indices, which reflect past patterns of issuance, PIMCO’s GDP weighting is forward-looking. It emphasises growing economies with strong fundamentals where there may be new opportunities,” senior vice president and emerging markets product manager Chris Getter said in a statement.

The fund is registered for sale in Germany, Ireland, Luxembourg, Norway, Sweden and the UK, and is in the process of being passported to Austria, France, Finland, Italy (for institutional investors only) and the Netherlands.