The VanEck Emerging Markets High Yield Bond ETF (HYEM) offers investors a 6.5% yield and potential for dividend growth. Despite mediocre returns amid rising market interest rates, the fund has outperformed most of its peers due to its strong dividends. As interest rates stabilize, performance and dividends should improve. The fund’s high-yield characteristic does present risks, but its diversified exposure across various emerging markets balances out the risk factor.
HYEM: Emerging Markets High-Yield Bond ETF, 6.5% Yield, Recent Outperformance
The VanEck Emerging Markets High Yield Bond ETF (HYEM) offers investors a 6.5% yield and potential for dividend growth. Despite mediocre returns amid rising market interest rates, the fund has outperformed most of its peers due to its strong dividends. As interest rates stabilize, performance and dividends should improve. The fund’s high-yield characteristic does present risks, but its diversified exposure across various emerging markets balances out the risk factor.