Supply Overhang Could Hamper EM Bond ETFs

Russia is EMB’s largest country weight, combining with Mexico and Indonesia for over 17% of the ETF’s weight. Russia is PCY’s ninth-largest country allocation at 4.45%. PCY also features decent exposure to countries, such as South Korea, Poland and the Philippines, that are less dependent on external financing. Those countries, all top-10 weights in PCY, combine for over 13% of the ETF’s weight.

PowerShares Emerging Markets Sovereign Debt Portfolio

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