EMB tracks U.S. dollar-denominated emerging market debt, including investment-grade bonds rated AA 3.0%, A 7.6% and BBB 45.2%. The ETF has a 0.60% expense ratio and a 4.92% 30-day SEC yield.
Additionally, the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY) also provides exposure to USD-denominated emerging market debt, including investment grade bonds rated AA 4%, A 9% and BBB 48%. The ETF has a 0.50% expense ratio and a 5.12% 30-day SEC yield.
Alternatively, investors can consider the actively managed WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD) and the passively managed Market Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC) for exposure to local currency denominated debt. Local currency bonds can benefit from the strengthening emerging market currencies. ELD has a 0.55% expense ratio and a 5.29% 30-day SEC yield, and EMLC has a 0.47% expense ratio and a 5.51% 30-day SEC yield. [EM Currency ETF Makes a Quick Turn Around]
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.