EMB’s top country allocations include Brazil 7.1%, Russia 7.1%, Turkey 6.8%, Mexico 6.5% and Philippines 6.5%. The fund’s credit ratings include AA+ 0.4%, AA 0.2%, AA- 1.1%, A+ 1.9%, A 1.3%, A- 5.4%, BBB+ 0.4%, BBB 31.7%, BBB- 9.2%, BB+ 10.4%, BB 7.6%, BB- 2.6%, B+ 9%, B 4.2% and B- 0.4%.
The PowerShares Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY) is another offering that is exposed to U.S. dollar denominated debt. The fund has a 4.26% 30-day SEC yield and a 0.50% expense ratio.
PCY’s top country allocations include Hungary 4.7%, Pakistan 4.6%, Lithuania 4.5%, Ukraine 4.5% and Poland 4.5%. Credit quality breakdown includes AA 4%, A 9%, BBB 40%, BB 32% and B 15%.
In comparing returns, the local currency ETF EMLC has gained 6.1% and ELD returned 5.0% over the past year, whereas the U.S. dollar denominated EMB gained 9.0% and PCY increased 12.8%.
For more information on debt securities, visit our bond ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own EMB.