“The emerging-market story is more than just about ‘yield,'” David Robbins, portfolio manager for TCW Emerging Markets strategies, said in the Reuters article. “It is a long-term credit improvement story.”

Emerging market assets in general have been a hot draw. On the equities side, emerging market equity funds garnered $828 million, which suggests greater investor confidence and increasing risk appetite. For instance, the iShares MSCI Emerging Markets (NYSEArca: EEM) has brought in $1.6 billion and Vanguard MSCI Emerging Markets (NYSEArca: VWO) added $11.5 billion in new assets year-to-date, according to IndexUniverse.

Investors can choose from the U.S. dollar-denominated emerging market bond funds.

  • iShares JPMorgan USD Emerging Markets Bond Fund (NYSEArca: EMB): 3.45% 30-day SEC yield
  • PowerShares Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY): 4.18% 30-day SEC yield

Moreover, investors can also take a look at local currency denominated ETFs. If the U.S. dollar begins to appreciate, local currency bond funds may see lower returns.

  • WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD): 3.96% 30-day SEC yield
  • Market Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC): 5.14% 30-day SEC yield
  • SPDR Barclays Capital Emerging Markets Local Bond ETF (NYSEArca: EBND): 4.71% 30-day SEC yield
  • iShares Emerging Markets Local Currency Bond Fund (NYSEArca: LEMB): 4.10% 30-day SEC yield

For more information on the emerging markets, visit our emerging markets category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own EMB.