ELD also features a 10.6% weight to Brazil, which is noteworthy because of the emergence of Aecio Neves as a credible threat to topple President Dilma Rousseff in Brazil’s Oct. presidential runoff. A Neves victory would likely spark a rally in the Brazilian real, which would be a boon for the local currency-denominated ELD. [Neves Lifts Brazil ETFs]
Over 84% of ELD’s holdings are rated AA, A or BBB. ELD, which has an effective duration of 5.1 years and a 30-day SEC yield of 5.29%, was the first actively managed ETF in the U.S. to top $1 billion in assets under management and once the largest actively managed ETF prior to the debut of the PIMCO Total Return ETF (NYSEArca: BOND), which Gross previously managed.
ELD charges 0.55% per year. Another idea to consider is the Market Vectors Emerging Markets Aggregate Bond ETF (NYSEArca: EMAG). That passively managed ETF, which previously focused exclusively on Latin American debt, devotes 21.2% of its combined weight to Brazil and Mexico. EMAG ‘s holdings are nearly evenly split between dollar-denominated and local currencies. The fund charges 0.5% per year and has a modified duration of 4.96 years. [Market Vectors Changes LatAm Bond ETF]
WisdomTree Emerging Markets Local Debt Fund