ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Improving Conditions in EM Bonds Spell Opportunity for China ETF
China Insights Channel
Share

Improving Conditions in EM Bonds Spell Opportunity for China ETF

Ben HernandezAug 11, 2023
2023-08-11

Global asset management firm Janus Henderson recently highlighted emerging markets (EM) bonds in a report, noting that the current market environment could be ripe with opportunities in EM debt.

Of course, EM bonds have been feeling the downward pressure of rising interest rates and a strengthening U.S. dollar over the past couple of years. However, the proverbial tide could be turning in favor of EM debt. The global macroeconomic environment continues to develop amid eventual central bank monetary policy loosening.

“In the near-term, the uncertain global macro environment is the key factor that is driving the outlook and trajectory for the asset class in the remainder of 2023, but we expect to see more positive flow dynamics over the medium term on the back of a widening economic growth differential between emerging markets (EM) and developed markets (DM),” the report said.

When mentioning EM assets, China is the proverbial tide that lifts all boats. The second-largest economy is currently undergoing a pandemic-related malaise, but recent government stimulus measures could help prop up its recovery.

“Within the EM space, developing Asia is a particularly bright spot, expected to post growth rates of 5.3% in 2023 and 5% in 2024, according to the IMF, but this is dependent on speed of the China recovery,” the report added further.

Targeted China Bond Exposure

Fixed income investors currently looking at China may see opportunities as the country looks to re-ignite economic growth. In the meantime, the government may need to issue bonds to help fund stimulus strategies, which could affect the KraneShares Bloomberg China Bond Inclusion Index ETF (KBND ).

KBND offers investors an ideal option to diversify their bond portfolios. The fund is benchmarked to the Bloomberg China Inclusion Focused Bond Index, which is designed to track the performance of China’s onshore renminbi-denominated bond market.

Overall features of KBND include:

  • Diversified investments in government bonds and high-quality corporate bonds. The fund attempts to provide attractive yields relative to other government and investment-grade bond markets with a monthly distribution. As of August 8, its 30-day SEC yield is 1.94%, and it has an unsubsidized 30-day SEC yield of 1.74%.
  • Access to the securities included in Bloomberg broad fixed income indexes and investment opportunities within the second-largest bond market in the world.
  • Low correlations to other major bond markets for more varied fixed income portfolios.

For more news, information, and analysis, visit the China Insights Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X