Both EMB and PCY are denominated in U.S. dollars which eliminates the guesswork of currency conversion, but the ETFs have not benefited from recent strength in the greenback. Year-to-date, the PowerShares DB Dollar Bullish (NYSEArca: UUP), the ETF equivalent of the U.S. Dollar Index, is up 1.6%. EMB is off 8% while PCY has tumbled 9.5%.
iShares J.P. Morgan USD Emerging Markets Bond Fund
ETF Trends editorial team contributed to this piece. Tom Lydon’s clients own shares of EMB.