As part of a diversified exchange traded fund portfolio, investors are including emerging market assets into the mix. Most are familiar with equity options, like those that track the MSCI Emerging Markets Index, but investors may also consider emerging market bond ETFs with enticing yields, as well.

With most of the developed world weighed by heavy debt burdens, the emerging markets standout as an island of fiscal soundness, writes Jose Garcia-Zarate, senior ETF analyst, for Morningstar. [Emerging Market Bond ETFs to Consider]

Emerging market debt boasts relatively strong credit quality, given their low debt-to-GDP ratios, and they offer attractive yields, compared to the safer alternatives – currently, 10-year Treasury notes yield a paltry 1.65%.

Moreover, emerging market bonds have exhibited a low correlation with traditional fixed-income assets, which helps boost a portfolio’s diversification qualities.

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