It's Easy to Explain Investors' Affinity for EM Bond ETFs

With interested rates expect to remain lower in the developed world and perhaps decline further, some strategists see emerging markets sovereign debt as a prime destination of income-starved investors.

Related: 3 Bond ETFs Hinting at Emerging Markets Upside

With the dollar weakening and emerging currencies rebounding, investors may also take a look at local currency-denominated ETFs, or emerging market bond ETFs that are issued in their local currencies, including the VanEck Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC) and the WisdomTree Emerging Markets Local Debt Fund (NYSEArca: ELD)ELD is an actively managed ETF.

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iShares J.P. Morgan USD Emerging Markets Bond ETF

Tom Lydon’s clients own shares of EMB.