Weiskopf said he’s also long iShares JPMorgan USD Emerging Markets Bond (NYSEArca: EMB). ETFs that invest in emerging market debt can provide diversification and attractive yields. [Finding the Best ETFs for Emerging Market Bonds]
John Graves, managing principal of the Renaissance Group, told IBD he likes PowerShares Emerging Markets Sovereign Debt (NYSEArca: PCY) for the fourth quarter. The ETF holds assets of $2.3 billion and offers a 12-month yield of 4.7%, according to Invesco PowerShares.
“The current components are the sovereign debts of Vietnam, Pakistan, Romania, Korea, Qatar and Turkey,” Graves said in the report. “The risk is certainly higher than that from stronger balance sheet nations such as … . Well, there aren’t many of those left these days, are there?”
PCY charges an expense ratio of 0.5%. [Emerging Market Bond ETFs with Attractive Yields]
PowerShares Emerging Markets Sovereign Debt
Full disclosure: Tom Lydon’s clients own JNK and EMB.