Colombia is the ninth-largest country weight in the actively managed WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD). Although ELD devotes over 18% of its weight to Brazil and Russia, the ETF has gained 5% over the past 90 days as risk appetite has increased and emerging markets currencies have firmed. [Risk on Environment Lifts EM Bond ETFs]
Nearly three-quarters of ELD’s holdings are rated A or BBB. The ETF has a 30-day SEC yield of 5.32% and an effective duration of 4.97 years.
Colombia is the fourth-largest country weight in the iShares Emerging Markets Local Currency Bond ETF (NYSEArca: LEMB), though that is barely more than half the weight the ETF devotes to Mexico and less than a third of Brazil’s weight in the fund. LEMB has a 30-day SEC yield of 4.85% and an effective duration of 4.27 years.
Colombian 10-year bonds yield 6.32%, or about 70 basis points more than benchmark Greek debt with a lower credit rating.
WisdomTree Emerging Markets Local Debt Fund
