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Emerging Market Bond ETF (EMB) Hits New 52-Week High

Sanghamitra Saha
Bear of the Day: The Michaels Companies (MIK)

For investors seeking momentum, iShares J.P. Morgan USD Emerging Markets Bond ETF EMB is probably on radar now. The fund just hit a 52-week high, and is up 11.1% from its 52-week low price of $102.15 per share. 

But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed: 

EMB in Focus

The underlying J.P. Morgan EMBI Global Core Index is a broad, diverse U.S. dollar-denominated emerging markets’ debt benchmark that tracks the total return of actively traded external debt instruments in emerging market countries. It charges investors 39 basis points a year in fees and yields 5.54% annually (see: all Emerging Market Bond ETFs here). 

Why the Move?

As the Fed hints at policy easing in 2019, the greenback remains subdued. This is a great scope for the outperformance of the emerging market bond fund EMB. Investors are betting on it due to its high dividend payments in a low-rate environment. 

More Gains Ahead?

The fund has a positive weighted alpha of 7.80, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB): ETF Research Reports
 
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