This ETF offers exposure to bonds traded in the Dim Sum bond market, which are denominated in the Chinese currency. As such, this ETF could be appealing for investors looking to establish exposure to the Chinese yuan, which is generally expected to appreciate in coming years as Beijing loosens control on its currency. DSUM can be used in a number of different ways, including as a diversification agent in long-term fixed income portfolios that tend to be dominated by debt of U.S.-based issuers. In certain environment, DSUM may offer a substantially greater yield than comparable debt denominated in the U.S. currency, while at the same time delivering some dollar diversification. In our opinion, most U.S. investor portfolios do not maintain an appropriate level of exposure to international debt markets; tools like such as DSUM have the potential to both lower overall risk and enhance bottom line yields realized from the fixed income portion of a portfolio. DSUM shouldn't be expected to turn in the same magnitude of returns delivered by investment in Chinese stocks; this ETF is much more likely to deliver steady gains than huge price appreciations. There are several aspects of the Dim Sum bond market and of DSUM that are noteworthy. First, the underlying portfolio isn't necessarily limited to Chinese issuers; Western corporations can and do issue debt in the Dim Sum market. Second, it should be noted that the Dim Sum bond market is not the same thing as the bond market that is available to local Chinese investors; DSUM is an innovative product that has opened up a potentially exciting asset class, but it doesn't quite put U.S. investors on the same footing as those in mainland China. Investors should also take a close look at the underlying portfolio of DSUM, as it may be somewhat shallow in nature and concentrated in a relatively small number of holdings. Investors seeking broad-based emerging markets bond exposure may prefer ELD, while those looking to developed and emerging Asian bonds have ALD as a tool. And there are other ETF options for Dim Sum bonds as well, including RMB and CHLC. Those products are generally similar; when comparing the options, investors should consider expenses, depth of holdings, and the balance of the underlying portfolio.
The adjacent table gives investors an individual Realtime Rating for DSUM on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Emerging Markets Bonds with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This section compares how balanced and deep this ETF is relative to the peer group ETFdb.com Category.
|Corporate Senior Note||70.44%|
|Agency Senior Note||4.07%|
|Corporate Subordinated Note||3.01%|
|Supranational Senior Note||1.46%|
|Agency Unsecured Note||1.15%|
|0% to 1%||0.0%|
|1% to 2%||0.0%|
|2% to 3%||3.78%|
|3% to 4%||26.87%|
|4% to 5%||53.36%|
|5% to 6%||12.18%|
|6% to 7%||0.0%|
|7% to 8%||1.49%|
|8% to 9%||0.0%|
|9% to 10%||2.32%|
|Greater Than 10%||0.0%|
|Less Than 1 Year||47.04%|
This ETF is currently available for commission free trading on the following platforms: (Charles Schwab)
There are 0 other ETFs in the Emerging Markets Bonds ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
This section compares the fund flows of this ETF to peers in the same ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of DSUM relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
Source: LSEG Information Services (US), Inc. (“LSEG”) © LSEG 2016. All rights in the XTF data, ratings and / or underlying data contained in this communication (“the XTF information”) vest in LSEG and/or its licensors. Neither LSEG nor its licensors accept any liability arising out of the use of, reliance on or any errors or omissions in the XTF information. No further distribution of the XTF information is permitted without LSEG’s express written consent. LSEG does not promote, sponsor or endorse the content of this communication.