iShares Emerging Markets High Yield Bond ETF (NYSEArca: EMHY)
30-Day SEC Yield: 6.28%
Effective Duration: 5.66 years
Comment: EMHY holds mostly sovereign debt with some quasi sovereigns sprinkled in. Interestingly, many of the ETF’s largest country weights have investment-grade credit ratings. Turkey, Russia and China combine for over 22% of EMHY’s weight and all three have investment-grade ratings. The wildcard in this ETF is Venezuela, which accounts for 13.2%. EMHY has one of the largest ETF allocations to that country, which has a penchant for currency devaluations.