Related: Investment-Grade EM Bond ETF for Stable, Attractive Returns

Many developing economies also have a handle on inflation, with central banks implementing more hawkish policies like rate hikes to counter inflationary pressures. Consequently, inflation is expected to slow, Rodilosso said.

Investors interested in gaining exposure to emerging market local currency bonds for their attractive yield potential may turn to options like the VanEck Vectors Emerging Markets Local Currency Bond ETF (NYSEArca: EMLC), which tracks the J.P. Morgan GBI-EM Global Core Index. EMLC has a 5.50% 30-day SEC yield, a 5.15 year duration and a 0.44% expense ratio.

For more information on the fixed-income space, visit our bond ETFs category.