Other ETFs in the category include WisdomTree Emerging Markets Local Debt (NYSEArca: ELD), Market Vectors Emerging Markets Local Currency Bond (NYSEArca: EMLC) and SPDR Barclays Capital Emerging Markets Local Bond (NYSEArca: EBND). Some of the ETFs are denominated in U.S. dollars, others in local currencies. [Is the Party Over for High-Yield Emerging Market Bond ETFs?]
The funds have been under heavy pressure since Fed chief Ben Bernanke said the central bank was watching for signs of investors “reaching for yield” and other forms of excessive risk-taking. Fed officials have also hinted they would taper if U.S. economic data continues to improve.
“The sell-off in Treasury prices and the accompanying rise in yields that followed indications from the Fed last month that it stood ready to temper bond purchases has already rumbled emerging markets from Poland to South Africa by curbing the relative attractiveness of emerging market debt and fanning concerns that there will be less spare cash in the financial system,” according to a separate Dow Jones report.
iShares J.P. Morgan USD Emerging Markets Bond Fund
Full disclosure: Tom Lydon’s clients own EMB.