Retail Investors Dumping EM Bond Funds Faster Than Pros

At the moment, interest in developing world bonds is fleeting, but some professionals see opportunity. Last week, PIMCO, the world’s largest bond manager, said in a commentary “Continuing vulnerabilities in global growth suggest there is fundamental value in EM bond yields at present valuations, as interest rate hikes priced into EM yield curves are unlikely to materialize in an environment of tentative growth.” [Emerging Markets Bond ETFs Yield 5% After Rate Sell-Off]

That could mean there is value to be had in ETFs like EMB and EMLC and those that buy low now may be able to sell high later.

Market Vectors Emerging Markets Local Currency Bond ETF

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EMB.