However, emerging markets do pose more political and economic risk than a developed market. Most emerging countries do not have a strong Democratic following and have been notorious for defaulting on their debt as soon as stress presents itself.
As usual, with a fixed income product, interest rate risk is present. Plus, currency risk is a factor with ELD. Local currency bonds are riskier than U.S. bonds, so more volatility is evident with ELD. [High Yield Emerging Market Bond ETFs Come with Risk]
WisdomTree Emerging Markets Local Debt
Tisha Guerrero contributed to this article.