3 Top Rated ETFs for Emerging Market Bond Investors

When it comes to emerging market government bonds, investors are lured by the much higher yields on offer relative to developed counterparts

Jose Garcia Zarate 15 November, 2016 | 4:27PM
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After a few years in the doldrums, emerging markets – both equity and fixed income – have experienced a resurgence in 2016. Investors have been taking a more sanguine approach to the risks surrounding these countries, with many taking heart from the fact that the worst predictions about a sharp growth slowdown have not come to fruition. In addition, the rebound in emerging market asset prices has been supported by the apparent bottoming of commodity prices. The outlook remains filled with uncertainty, however, not least in the wake the results of the US presidential election.

many of developed countries' bonds are stuck in negative interest rates

When it comes to emerging market government bonds, investors are lured by the much higher yields on offer relative to developed counterparts. This is particularly relevant in the current environment where many of these developed countries are stuck in negative interest rates.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
iShares JP Morgan $ EM Bond ETF USD Dist107.13 USD-0.48Rating
iShares JPMorgan EM Lcl Govt Bd ETF$Dist51.21 USD-0.18Rating
SPDR® Blmbrg Bcly EM Lcl Bd ETF Dis GBP48.04 GBP-0.22Rating

About Author

Jose Garcia Zarate

Jose Garcia Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe