Both funds carry primarily government-issued debt, known as “sovereign debt.”

PCY is more concentrated, wtih 25 holdings. The countries are equally weighted along with all issues within in country, so as to avoid overweighting countries with a greater debt burden. EMB holds 40 issues and carries some nonsovereign debt. Within its index, each country with higher debt is limited and the excess is reallocated to those with lower debt.

Emerging Market Bond ETFs