Importantly, EMSH has fallen just 2% this year, a year in which Russia’s rating has been cut twice, Brazil’s once and investors have fretted about default in Venezuela. Brazil and Venezuela combine for 13.3% of EMSH’s weight. The ETF has a 30-day SEC yield of 4.72% and a modified duration of just 2.55 years, according to ProShares data.
The Vanguard Emerging Markets Government Bond ETF (NasdaqGM: VWOB) is another ETF that has traveled Russia Downgrade Boulevard this year. Only 22.2% of VWOB’s holdings were rated below Baa at the end of September and Russia is currently the ETF’s largest country weight at 10.4%. That is down from 12% at the time of the S&P downgrade. [Vanguard EM Bond ETF off to a Fine Start]
VWOB is up 3.7% this year despite Russia and Brazil combining for 20.6% of the fund’s weight. However, VWOB’s duration is more than double that of EMSH’s at 6.6 years. Home to 715 bonds, VWOB charges 0.35% year and has a yield to maturity of 5.1%.
ProShares Short Term USD Emerging Market Bond ETF
