ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • 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 Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Investors May Look to Emerging Market Bond ETFs to Enhance Yields
News
Share

Investors May Look to Emerging Market Bond ETFs to Enhance Yields

Max ChenFeb 21, 2020
2020-02-21

As global rates retreated, more investors are looking into emerging market bonds and related ETFs to enhance their fixed-income portfolios with higher yields.

The market for emerging market bonds “is very hot right now,” Akbar Causer, emerging markets portfolio manager at Eaton Vance, told the Wall Street Journal. “It’s very easy for a company to come to the market, especially if you’re in a country that’s in favor.”

Emerging market companies have sold a record amount of foreign-currency-denominated debt this year. About $66.4 billion of bonds denominated in U.S. dollars, euros and other currencies have been sold this year by nonfinancial businesses in emerging countries, according to Dealogic data.

Meanwhile, investors have turned to emerging market debt as a greater source of yields. For example, the Vanguard Emerging Markets Government Bond ETF (VWOB A) and iShares Emerging Markets High Yield Bond ETF (EMHY B), which both track USD-denominated emerging market bonds, have attracted $205 million and $128 million in net inflows, respectively, so far this year.

“It has been very opportunistic,” Chris Mey, senior fund manager at European asset manager Candriam, told the WSJ. “There is a sense that when you hit these lows in Treasurys, you don’t know when something unforeseen could happen to markets and then you have missed the opportunity.”

Yields on benchmark 10-year U.S. Treasury notes were hovering around 1.53% on Thursday, compared to its 1.88% level at the start of the year.

However, some market observers are warning of the potential risks associated with this increased demand for emerging market debt exposure among investors. Specifically, emerging-market corporate debt is a relatively new and make up an illiquid market. Furthermore, these borrowers may face further challenges to pay back their bill if the U.S. dollar strengthens further. The WSJ Dollar Index, which tracks the greenback against a basket of widely viewed currencies, has appreciated 10% in the past two years.

This article originally appeared on ETFTrends.com.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jan 30

Impact Bonds: Bumps in the Road Give Way

Jan 30

JRNY Rallies Over 16%

Jan 30

Focus on Free Cash Flow Over Tech Earnings With TTAC

Jan 30

Gain Exposure to GE HealthCare With RYH and CSD

Jan 30

Markets Dip, Anticipating Earnings and Fed Decision

Jan 30

Strong January for ARK Sees 3 Top-Performing ETFs

Jan 30

Time for Value? Watch AI-Backed Value ETF AIVL

Jan 30

China Gears Up To Boost Consumption

Jan 30

Fixed Income “Has a Huge Potential” to Outperform

Jan 30

Disruptive Commerce ETF BUYZ Goes Shopping

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

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