London-based iShares, the exchange-traded funds platform of BlackRock, has expanded its fixed income range with the launch of the iShares Barclays Capital Emerging Market Local Govt Bond fund, listing on the London Stock Exchange.

Many emerging market governments issue debt in two denominations, dollar and local currency, with different yield and risk profiles. The new iShares fund offers access to the fixed-rate debt of emerging market governments denominated in their local currencies. The fund invests in physical bonds and aims to provide investors with diversified exposure to a sector which can be difficult and costly to capture directly.

The fund extends iShares’ European fixed income range to 43 funds with a total of $30 billion in assets under management. It specifically complements the iShares JPMorgan $ Emerging Market Bond fund, the firm said.

“Over the past two years, many of the emerging market currencies appreciated versus hard currencies. Local currency bonds can be an effective way for investors to benefit from this appreciation,” Axel Lomholt, head of product development for iShares EMEA, said in a statement.