“Emerging-market assets sold off this year, pressured by a stronger dollar, higher interest rates globally and trade tensions between China and the U.S., the world’s two biggest economies. Stocks entered a bear market in October when Treasury yields crossed the 3.2 percent level, hard-currency sovereign bonds are headed for their first losses since 2013 and all major developing-nation currencies are set to end the year in negative territory,” according to Bloomberg.
Along with EMB, fixed-income investors can look to options like the Invesco Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY) and JPMorgan USD Emerging Markets Sovereign Bond ETF (NYSEArcaL: JPMB) to gain exposure to dollar-denominated emerging market debt.
For more fixed income investment solutions, visit the Fixed Income Channel.