Tag: ETF emerging market bond

Although credit quality in U.S. high-yield debt is supposedly higher than it has been in previous years – thanks to more bonds being secured with assets and a greater proportion of higher-quality issuance – U.S. corporates are likely

One of the largest exchange traded funds dedicated to emerging markets bonds, VWOB is essentially flat on the year, but the fund sports a tempting 30-day SEC yield of 6.79%. As noted above, default risk

“I think that’s going to be a really big opportunity,” Huang said of emerging markets debt investing in particular. That said, U.S. investors would do well not to miss out on the yields available in emerging markets

IHD has been consistently generating high yields since it started its operations 12 years back. The annual average yield since 2013 has been almost 11.5 percent. IHD focuses on China, India, Taiwan, and South Korea – four economies that have investment-grade sovereign ratings and above-average growth potential. IHD’s portfolio is well-diversified among the different high-growth sectors in emerging markets and carries the usual risks that such a fund will generally have.

EM local currency bonds comprise nearly 60% of the investable emerging markets debt universe and is over 2.5x the size of the U.S. dollar denominated, or “hard currency,” EM sovereign market. The

EM bonds look bullish in the short term as declining UST yields and improving credit risk are both supporting the sector. With a yield of 7.3%, the iShares J.P. Morgan USD Emerging Markets Bond ETF is likely to deliver highly positive real returns. The ETF is also likely to outperform most EM equity funds, with the added benefit of less volatility.