ETF investors who want to tap into developing economies’ credit market have a number of options to choose from. For instance, the actively managed WisdomTree Emerging Markets Corporate Bond Fund (NasdaqGS: EMCB) includes exposure to Hong Kong 14.1%, China 13.0%, Brazil 11.9%, Mexico 9.9% and Russia 9.6%, among others. The active ETF has a 4.63 year duration and a 5.42% 30-day SEC yield.
The SPDR BofA Merrill Lynch Emerging Markets Corporate Bond ETF (NYSEArca: EMCD) top country allocations include China 15.2%, Mexico 13.6%, Brazil 13.11%, Russia 10.6% and South Korea 5.4%. EMCD comes with a 5.34 year duration and a 5.64% 30-day SEC yield.
The iShares Emerging Markets Corporate Bond ETF (NYSEArca: CEMB) top country weights include Brazil 13.0%, Mexico 11.6%, China 10.9%, Russia 10.5% and South Korea 8.4%. CEMB has a 4.92 year duration and a 5.89% 30-day SEC yield.
For more high-yield or speculative-grade debt options, investors can look to the Market Vectors EM High Yield Bond ETF (NYSEArca: HYEM), which has a 3.56 year duration and a 10.27% 30-day SEC yield, and iShares Emerging Markets High Yield Bond ETF (BATS: EMHY), which has a 5.50 year duration and a 8.23% 30-day SEC yield.
Max Chen contributed to this article.