This “space” has matured rapidly in terms of asset growth in the past several years, and we believe the impetus is simply relatively low yields being offered in other corners of the market (i.e. U.S. Treasuries), and the availability of such ETFs that focus on EM debt, that have good track records now of delivering (both funds debuted in 2007) are not being overlooked, but instead used in more and more retail and institutional portfolios.
Whereas ten years ago for instance, costs and feasibility were the biggest barriers for an investor to access bundled EM debt, because it entailed seeking out and acquiring individual bonds, and worse, trading them largely overseas in most cases and worrying about potentially high commissions and unfamiliar regulations.
Both EMB and PCY offered structured and sensible methodologies in granting exposure to the debt of Emerging economies including the likes of the Philippines, Peru, Indonesia, Russia, Brazil, Colombia, Romania, Vietnam, Korea, and Turkey to name a few.
PowerShares Emerging Sovereign Debt
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].