Finn, Lopez on Fixed Income Risk, Alternative Bond ETF Ideas

Van Eck Global Marketing Director Ed Lopez and Director of ETF Business Development Pat Finn joined ETF Trends Publisher Tom Lydon at the Morningstar ETF Conference to discuss alternative bond ETF ideas, including how advisors and investors can deploy emerging markets debt in their portfolios.

Lopez notes some emerging markets governments enjoy better financial positions and policies than some of their developed world counterparts.

“Why look at EM debt? High potential yield, idiosyncratic risks, so it’s going to be somewhat non-correlated to U.S polices,” said Lopez.

Finn highlighted opportunities in municipal bonds, noting that investors are increasingly attracted to the high-yield muni space.

“We’ve done a lot of work on default rates,” said Finn. “Over the 30-year period that we looked at, the average annual default rate on the indexes we follow is just a shade of 1%.”

Watch the video below to see the full interview.

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