PowerShares Fundamental Emerging Markets Local Debt Portfolio (NYSEArca: PFEM)
30-Day SEC Yield: 6.38%
Effective Duration: 5.43 years
Comment: Amid tapering talk and the subsequent rise in U.S. interest rates, local currency emerging markets bond ETFs were punished earlier this year. Insolation from price retrenchment in local currency emerging world debt is hard to come by these days, but PFEM is not a high credit risk fund. To be included in the new ETF, a bond must be rated at least CC, but 84% of the fund’s 33 holdings are rated AA, A or BBB.