ETF Trends publisher Tom Lydon discussed the VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
EMLC is an easy way to access non-USD-denominated emerging market sovereign debt.
As a result of the weaker USD, commodity prices have strengthened. There is a tight link between commodity prices and emerging market local currency returns.
Potential investors shouldn’t immediately associate EM bonds with high risk. EMLC’s portfolio includes 53.0% investment-grade rate debt, along with 18.8% non-investment grade and 28.2% non-rated debt.