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.