Related: Income Seekers May Find Attractive Yields in EM Bond ETFs
The investment-grade EM bond ETF has a 0.40% expense ratio, a 3.45% 30-day SEC yield and a 8.28 year effective duration.
Top country weights include Mexico 9.6%, Indonesia 7.6%, Philippines 8.0%, Panama 5.4% and Hungary 5.3%. IGEM may also diversify an investor’s portfolio relative to traditional emerging market equity exposure as the investment-grade bond ETF’s country weights lean toward Latin American countries, whereas EM stocks tilt toward Asia, namely China.
It’s also interesting to note it IGEM has also outperformed iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB) in the last 3 months, which represents the broader universe of investment grade and high yield USD sovereign bonds, and is essentially in line YTD.
For more information on the fixed-income space, visit our bond ETFs category.