A Rough Day for Emerging Markets Bond ETF

Colombia, Indonesia, Malaysia and South Africa are among the emerging markets holding elections next year. Those countries combine for about 14% of EMB’s roster.

Votes in countries like Russia are more predictable, but a tight race between heavyweight contenders like Brazil and Mexico could trigger rounds of greater political risk-induced volatility in the emerging markets, or shake up emerging market bond exposure that some fixed-income investors have taken this year in search of yield.

Mexico has general elections in July, Malaysia has general elections in August, Brazil has general elections in October and Thailand has general elections in November.

For more information on the developing economies, visit our emerging markets category.