This ETF offers exposure to debt of emerging markets issuers, focusing specifically on corporate bonds. As such, EMCB offers access to a corner of the global bond market that many fixed income portfolios overlook; it represents away to round out exposure to emerging markets with a position to complement emerging markets stock ETFs. Emerging markets corporate bonds offer a way to enhance returns relative to U.S. debt, potentially without taking on significant incremental risk.
EMCB focuses on dollar-denominated debt, which removes the exchange rate risk from the equation. There are a number of other emerging markets bond ETFs that include currency exposure (such as ELD), though they generally include exposure to corporates and sovereign debt. Another noteworthy aspect of EMCB is that this ETF is actively managed as opposed to index-based. That results in a slightly higher expense ratio, but may be soothing for investors who aren't comfortable with the combination of indexing strategies and fixed income, or for those who are simply prefer an experienced manager in asset classes that can be potentially illiquid and inefficient.