Granted, it is a dollar-denominated fund, but one of most impressive recent performances turned in by an emerging markets bond ETF comes courtesy of the iShares Emerging Markets High Yield Bond ETF (NYSEArca: EMHY).
The $183.7 million EMHY is up 7.4% over the past 90 days and that is with nearly a quarter of the fund’s combined weight going to Turkey, Russia and Brazil. That does not include the 13.8% allocation to Venezuela, a country that has been wracked by hyper inflation, or a 2.8% weight to Ukraine. [Bond ETFs Survive Ukraine Conflict]
EMHY’s effective duration is almost 5.8% years with a 30-day SEC yield of 6.37 years. A combined 45% of the ETF’s holdings are rated BB+ or BB by S&P.
iShares Emerging Markets High Yield Bond ETF
Tom Lydon’s clients own shares of EMB.