“HYEM will continue to focus solely on the non-sovereign segment of the high yield emerging markets bond universe,” said Fran Rodilosso, senior investment officer for fixed income ETFs with Van Eck, in the statement. “But once it seeks to track the new index, it will do so with greater diversification and issuer caps to limit the potential for overconcentration.”
HYEM is up nearly 2% this year despite allocating a combined 22.6% of its weight to Brazil, Russia and Venezuela, all of which have recently endured sovereign credit downgrades from ratings agencies, or in the case of Brazil, J.P. Morgan. [Things are Terrible for Brazil ETFs]
Market Vectors Emerging Markets High Yield Bond ETF
ETF Trends editorial team contributed to this post.