Many emerging markets are classified as “below investment grade” although the respective economy remains strong, which means the yields are much higher than those of developed economies. PCY has a yield of 3.7%, while EMB has a payout of 3.6%. [Rising Interest in Riskier Emerging Market ETFs]
PowerShares Emerging Markets Sovereign Debt Portfolio
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own EMB.