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HYEM Portfolio Details
HYEM, home to nearly $321 million in assets under management, holds 475 bonds. The average portfolio maturity is 4.90 years. Over 93% of HYEM’s holdings are rated BB or B and the ETF features little exposure to highly speculative CCC-rated debt.
“Emerging markets growth still provides a favorable backdrop both outright and relative to developed markets, although the repercussions of a trade war may pose a threat to this dynamic,” according to VanEck. “Leverage ratios and interest coverage among emerging markets high yield issuers have improved steadily since mid-2016, as they have for U.S. high yield borrowers. But investors are being compensated with approximately 30% more yield spread above Treasuries per unit of leverage for emerging markets high yield bonds versus U.S. ones.”
HYEM has an effective duration of 3.66 years and a 30-day SEC yield of 6.76%. China, Brazil and Turkey combine for over 30% of the fund’s geographic exposure. Bonds featured in HYEM are dollar-denominated.
For more information on the fixed-income market, visit our bond ETFs category.