EMCB offers exposure to over 30 countries with weights ranging from 0.47% to 10.79%. Russia, Brazil and Chile combine for about 29% of the fund’s geographic exposure. Chile is the highest rated member of that trio. The fund’s risk profile compares favorably with widely followed emerging markets bonds benchmarks, such as the DBIQ Emerging Markets Liquid Balanced Index (DBLQBLTR) and the J.P. Morgan EMBI Global Core Index (JPEICORE).
“EMCB is approximately 67% investment grade, with less than 1% of its remaining 32% high-yield exposure coming from debt that’s rated CCC or below. However, DBLQBLTR and JPEICORE are approximately 46% and 59% investment grade, respectively, with a much larger high-yield allocation tilting toward the ‘junkier’ end of the credit spectrum,” according to WisdomTree.
EMCB’s embedded income yield of 5.22%, which is solid, particularly when considering the fund reduces risk relative to competing strategies in the emerging markets debt category.
For more information on the fixed-income space, visit our bond ETFs category.