|Bid||0.00 x 4000|
|Ask||0.00 x 3200|
|Day's Range||27.41 - 27.46|
|52 Week Range||25.56 - 28.44|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.89|
|Expense Ratio (net)||0.00%|
The iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ: EMB), the largest exchange traded fund tracking bonds in developing economies, is up 3.41% this year and some market observers believe opportunity ...
The iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ: EMB), the largest exchange traded fund tracking bonds in developing economies, is up more than 4%. That after the fund struggled last year ...
Emerging markets debt has not been immune to the downdraft affecting assets in developing economies this year. The iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ: EMB), the largest exchange ...
Securities like high dividend stocks offer decent yield, but they can be volatile. The solution? Mix income securities, balancing yield with tolerable risk.
Rising external financing costs and current account deficits are among the factors plaguing emerging markets debt this year, pressuring exchange traded funds such as the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and the PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) along the way. Some analysts and market observers believe the scenarios confounding emerging markets bonds this year could linger into 2019. “The impact of tighter US monetary policy, a strengthening dollar, and risks to global trade and growth will continue to be felt in 2019,” said Fitch Ratings in a note out Monday.
A strong dollar coupled with a spate of surprising interest rate hikes in some developing markets are among the factors punishing emerging markets debt this year, pressuring exchange traded funds such as the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and the PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) in the process. The Federal Reserve began its current tightening cycle in 2015 and while the first few rate hikes did not pinch emerging markets debt all that much, that scenario is changing in a big way this year. With respect to value compared to price, many of these ETFs from abroad present a profitable opportunity that can be realized, especially if China and the U.S. eventually ameliorate their trade differences by year’s end.
The emerging markets have been pummeled this year, but after the selling, EM debt and bond-related ETFs appear attractive for their level of risk. "Given the state of the world with strong U.S. growth and contained inflation globally, it's hard to imagine that emerging markets would suffer so much this year," Pablo Goldberg, a senior fixed-income strategist with BlackRock, told CNBC. After the pullback in emerging assets, the spread of average EM bond yields over comparable duration U.S. Treasuries have significantly widened, with the average yield on the JP Morgan Emerging Markets Bond index up to 5% last week.
The performance of emerging markets exchanged-traded funds (ETFs) have been marred by the trade wars between the U.S and China, such as the Vanguard FTSE Emerging Markets ETF (VWO) --down 7.67% YTD, iShares Core MSCI Emerging Markets ETF (IEMG) --down 7.3% YTD and iShares MSCI Emerging Markets ETF (EEM) --down 7.78% YTD. “There are huge opportunities for fixed income in all global regions at the moment, particularly in Asia,” said Michael Paulus, Managing Director at OpenDoor Securities.
Could Spike in Volatility Make Emerging Market Growth Stumble? The benefits of an emerging markets aggregate bond exposure may explain the increasing flows into these strategies. According to J.P. Morgan, strategies which blend corporate and sovereign exposure took in approximately $35 billion in 2017, a similar level to sovereign focused emerging markets strategies.
Dollar-denominated emerging market bonds and related exchange traded funds are under increased pressure as the Federal Reserve hikes interest rates, trade tensions escalate and the U.S. dollar strengthens. Year-to-date, the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and Invesco Emerging Markets Sovereign Debt Portfolio (PCY) , which both track USD-denominated emerging market debt, declined 6.5% and 8.2%, respectively.
Many are still bullish on the EM fundamentals despite the recent selloffs. Are dollar-denominated EM bond ETFs better bets than equities right now?
On the one hand, fundamentals remain positive, and the global economic expansion appears to have momentum. From a flows perspective, we are seeing allocations along the risk spectrum by fixed income investors, with large inflows into both emerging markets debt as well as more conservative categories like ultra-short bonds.
Real yields in emerging markets (or EM) have remained at compelling levels over the past few years even as they continued to decline in developed markets, and even as nominal yield levels declined in some EM countries. Last summer we examined why real yields matter to emerging markets bond investors. Before we dive into the real yields that emerging markets are offering, let’s first make sure we understand what real yield is.
In recent years, some yield-starved investors embraced emerging markets debt as a way of increasing income, sending the popularity of exchange traded funds such as the iShares J.P. Morgan USD Emerging ...
As sovereign debt yields in developed markets plummeted and, in some cases, turned negative, income investors turned to emerging market debt for higher yields. Plenty of emerging markets bond exchange ...