“In a low-rate environment, we think this ETF is a strong one,” Rosenbluth said.
SEE MORE: It’s Easy to Explain Investors’ Affinity for EM Bond ETFs
PCY tries to reflect the performance of the DB Emerging Market USD Liquid Balanced Index, which tracks U.S. dollar-denominated government bonds issued by 22 developing economies.
Top country weights include Venezuela 4.2%, Brazil 3.8%, Colombia 3.8%, El Salvador 2.8% and Indonesia 3.6%.
While the emerging markets may be associated with greater risks, the fund’s portfolio includes quality debt. Investment-grade debt allocations include AA 6%, A 9% and BBB 40%, along with speculative-grade BB 21%, B 17% and CCC 4%.
For more information on the fixed-income market, visit our bond ETFs category.