OTC MARKET NEWS Powered By Quantifi

ETF Investors Are Flocking To Emerging Market Bonds 

July 27, 2016

David Fabian, NASDAQ

Negative interest rates in several major developed foreign nations may be the biggest theme driving the search for yield in 2016.  Many investors have navigated their way to U.S. Treasury, investment grade corporate, and municipal bonds for safety.  However, if you want an above average yield and are willing to take on more credit risk, emerging market bonds have become a preferred landing spot.

The growth in overall assets for Emerging Markets Bond (EMB) stands out in particular.  This fund started the year as the largest emerging market bond offering and has seen its asset size grow by more than 50% in 2016 to $8.5 billion.

EMB tracks a passively managed index of U.S.-dollar denominated sovereign bonds of more than 30 emerging market nations.  The total number of securities in this diversified Exchange Traded Funds (ETF) is currently well over 300. Read more  

 
 
Comments are closed on this post.

Subscribe

Submit your email to receive our newsletter

GO