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There's an ETF for that! Emerging Markets Bonds

There's an ETF for that! Emerging Markets Bonds

While it is not surprising that there are ETFs that cover debt from emerging markets, it's somewhat refreshing that they do not cost an arm and a leg.  Emerging markets fall between "developed markets" and frontier markets".  They consist of Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, Thailand, and other smaller emerging market countries.

Below are some of our preferred ETFs that cover emerging markets debt.   We've listed the tickers, names and expense ratios of the funds to consider:

  • IEMD      Invesco Emerging Markets Debt Defensive                                 0.30%
  • PCY        Invesco Emerging Markets Sovereign Debt                                  0.50%
  • LEMB     iShares JP Morgan Emerging Markets Local Currency Bond      0.30%
  • EMB       iShares JP Morgan USD Emerging Markets Bond                       0.39%
  • EBND     SPDR Barclays Emerging Markets Local Bond                           0.30%
  • EMTL     SPDR DoubleLIne Emerging Markets Fixed Income                  0.65%
  • EMAG   VanEck Vectors Emerging Markets Aggregate Bond                    0.35%
  • EMLC    VanEck Vectors JP Morgan Emerging Markets Local Bond         0.30%
  • VWOB   Vanguard Emerging Markets Government Bond                          0.30%
  • EMCB    WisdomTree Emerging Markets Corporate Bond                         0.60%
  • ELD        WisdomTree Emerging Markets Local Debt                                0.55%

As with any specialty fund, make sure you understand the methodology and do your your due diligence.  These funds should not be a core holding due to their concentration / non-diversification.  They should be used in conjunction with other global and international bond funds.