VanEck J.P Morgan EM Local Currency Bond ETF

EMLC tracks an index of debt issued by emerging market governments and denominated in local currencies of the issuers.

By William Sokol Director of Product Management The investment case for EM local currency bonds generally comes down to yield and diversification benefits within a portfolio, in our view. Emerging markets in general moved much quicker than the U.S.

EMLC: Question and Answer

Vanguard Total Bond Market ETF

SPDR Bloomberg International Treasury Bond ETF

WisdomTree Continuous Commodity Index Fund

VanEck International High Yield Bond ETF 

SPDR Bloomberg High Yield Bond ETF

Invesco International Corporate Bond ETF

iShares TIPS Bond ETF

Vanguard FTSE Developed Markets ETF

Vanguard Real Estate ETF

Vanguard Global ex-U.S. Real Estate ETF

Vanguard Total Stock Market ETF

Vanguard FTSE Emerging Markets ETF

SPDR FTSE International Government Inflation-Protected Bond ETF

The major asset classes continued to recover in the trading week through Friday, Nov. 11, based on a set of ETF proxies. The lone exception: a broad measure of commodities.

Real Estate Ex-U.S. Led Ongoing Rebound In Markets Last Week

VanEck Vectors Brazil Small-Cap ETF

Direxion Daily MSCI Brazil Bull 2X Shares

ProShares UltraShort MSCI Brazil Capped

SPDR Bloomberg Emerging Markets Local Bond ETF

iShares MSCI Chile ETF

WisdomTree Emerging Markets Local Debt Fund

VanEck Vct Emrg Shs

SPDR Bloomberg Emerging Markets USD Bond ETF

iShares Emerging Markets High Yield Bond ETF

SPDR DoubleLine Emerging Markets Fixed Income ETF

iShares MSCI Poland ETF

iShares MSCI Mexico ETF

iShares MSCI Brazil ETF

iShares MSCI Brazil Small-Cap ETF

iShares MSCI South Africa ETF

First Trust Brazil AlphaDEX Fund

First Trust Emerging Markets Local Currency Bond ETF

Franklin FTSE Brazil ETF

Franklin FTSE Mexico ETF

Franklin FTSE South Africa ETF

JPMorgan USD Emerging Markets Sovereign Bond ETF

iShares J.P. Morgan EM Local Currency Bond ETF

Invesco Emerging Markets Sovereign Debt ETF

Vanguard Emerging Markets Government Bond ETF

Central banks across emerging markets have reacted to elevated inflation by significantly tightening monetary policy, in some cases, well ahead of the U.S. Federal Reserve and the European Central Bank. After largely synchronized rate-hiking cycles across EM, monetary policies could once again begin to diverge among individual countries.

Peak Inflation May Hint At Peak Rates In Emerging Markets

SPDR Gold Trust

iShares S&P GSCI Commodity Indexed Trust

iShares Short Treasury Bond ETF

SPDR S&P 500 ETF Trust

United States Oil Fund LP

Invesco DB US Dollar Index Bullish Fund

US stocks led the October bounce. Vanguard Total Stock Market Index Fund surged 8.1%.

Major Asset Classes: October 2022 Performance Review

EMLC invests in emerging market government bonds issued in their local currencies. Higher rates and a strong Dollar have pressured the segment this year, although we highlight attractive value with a +7% yield.

EMLC: Compelling Value In EM Local Currency Bonds With A +7% Yield

Taming inflation has been a priority in developed markets this year. Positive real rates mean that local bond investors are being compensated for investing in bonds even after accounting for the effect of inflation on returns.

EM Sovereign Debt: Real Rates Come Into Play

US trading resumes tomorrow after a long Labor Day weekend, with the backdrop of risk-off sentiment dominating recent activity in the major asset classes. US stocks (VTI) posted a relatively middling loss, shedding 3.7% last month.

Major Asset Classes: August 2022 Performance Review

American Century Emerging Markets Bond ETF

Invesco BulletShares 2022 USD Emerging Markets Debt ETF

Invesco BulletShares 2023 USD Emerging Markets Debt ETF

Invesco BulletShares 2024 USD Emerging Markets Debt ETF

VanEck China Bond ETF

iShares J.P. Morgan EM Corporate Bond ETF

Morgan Stanley Emerging Markets Domestic Debt Fund Inc

Virtus Stone Harbor Emerging Markets Income Fund 

Stone Harbor Emerging Markets Total Income Fund

iShares JP Morgan USD Emerging Markets Bond ETF

Global X Emerging Markets Bond ETF 

WisdomTree Emerging Markets Corporate Bond Fund

Western Asset Emerging Markets Debt Fund

VanEck Emerging Markets High Yield Bond ETF

KraneShares Asia Pacific High Yield Bond ETF

Morgan Stanley Emerging Markets Debt Fund

Franklin Templeton Emerging Markets Income Fund

In emerging markets valuations look attractive today after the losses across financial markets early this year. PIMCO's investment process is founded upon our macroeconomic outlook and our in-house country and credit research.

Spotting Opportunities And Risks Across The EM Investment Universe

As the markets rebound, fixed-income investors can consider picking up some emerging market bond-related exchange traded funds. Morgan Stanley strategists led by Simon Waever advised in a note that should consider emerging market debt, making a bullish stance on the asset category for the first time since November 2020, Bloomberg reports.

Emerging Market Bond ETFs Are on the Mend

Historically, one of the bond segments that fixed income investors look to avoid when the Federal Reserve raises interest rates is emerging markets debt. That advice is proving accurate this year, and it's doubly true for bonds denominated in local currencies, owing to the fact that the dollar is currently one of the world's best-performing [.

After Drubbings, Emerging Markets Bonds Are Worth a Look

With U.S. interest rates rising and domestic bond funds slumping as a result, it's easy for investors to assume that all fixed income strategies should be ignored this year. Believe it or not, there remains a case for emerging markets debt.

Still a Case for Emerging Markets Debt

In the wake of Russia's invasion of Ukraine, Western nations levied punitive economic sanctions against Russia, making the country's financial markets essentially off-limits to major investment banks, index providers, and fund issuers. One of the results of those sanctions is significant reductions and, in some cases, outright eliminations of Russian securities in an array of [.

How Russia Reductions Will Affect EM Bond ETFs

FTSE Russell and MSCI — the index providers for some of the largest emerging markets exchange traded funds — are leveling harsh treatment of Russian stocks as that country escalates armed conflict with Ukraine. Next week, both index providers will dump Russian equities from their indexes.

Global Bond Benchmarks Say “Nyet” to Russian Debt

VanEck Vectors Egypt Index ETF

Goldman Sachs Access Emerging Markets USD Bond ETF

The latest sanctions on Russia's central bank are leaving custodians with tough questions.

Sanctions Throw ETF Custody Into New Territory

As the Federal Reserve closes in on the start of a new interest rate tightening regime — one that could bring as many as four hikes, perhaps more — fixed income investors are understandably pensive. An avenue for contending with higher interest rates in the U.S. is emerging markets bonds, which are accessible via a variety of [.

EM Bonds Could Be Way to Deal With Fed Tightening

Plenty of emerging markets assets languished last year. Amid dollar strength and rising interest rates in some developing economies, local currency bonds were part of that ominous trend.

EM Local Currency Bonds Ready for Redemption in 2022

With the Federal Reserve expected to hike interest rates multiple times this year, 2022 could be another tricky year for fixed income investors when it comes to U.S. government debt and other conservative corners of the bond market. Interestingly, relief could avail itself with emerging markets debt denominated in local currencies, potentially providing a lift [.

Income Investors Might Want to Consider These EM Bonds

iShares Core U.S. Aggregate Bond ETF

iShares iBoxx High Yield Corporate Bond ETF

With rates rising in the U.S., investors should consider looking abroad for bond exposure.

Emerging Market Debt Offers Diversification

It's been another trying year for investors holding emerging markets assets, including bonds. On the upside, 2021 disappointment could give way to pleasant surprises in 2022, perhaps setting the stage for rebounds by exchange traded funds like the VanEck J.P.

Emerging Markets Improvement Could Be Excellent for EMLC

Since our article, the fund is down over 7%, or more than 21% on an annualized basis.

EMLC - Moving From Bearish To Neutral After A 21% Annualized Decline

Inflation-indexed Treasuries (TIP) topped performance list in November with a 0.9% gain. A broad measure of US bonds (BND) was in second place with a 0.2% return.

Major Asset Classes: November 2021 Performance Review

Amid a slump in emerging markets currencies and central banks in many of those nations rushing to boost interest rates, the VanEck J.P. Morgan EM Local Currency Bond ETF (NYSEArca: EMLC) is a prime example of a fixed income exchange traded fund that's been under the microscope as of late.

Time to Take Technical Look at Emerging Markets Debt ETF

Invesco BulletShares 2021 USD Emerging Markets Debt ETF

WisdomTree Emerging Currency Strategy Fund

iShares Interest Rate Hedged Emerging Markets Bond ETF

ProShares Short Term USD Emerging Markets Bond ETF

KraneShares Bloomberg China Bond Inclusion Index ETF

Krane Shares Trust - KraneShares CCBS China Corporate High Yield Bond USD Index ETF

KraneShares E Fund China Commercial Paper ETF

Cambria Sovereign High Yield Bond ETF

Performance of emerging markets local currency bonds has been negatively impacted by the U.S. dollar's strength since mid-year, despite the higher real yields and upside growth surprises in many emerging markets. Currency returns can be volatile, and external factors can have a bigger short-term impact on an emerging markets currency (EMFX) even if relatively attractive fundamentals may provide longer-term support.

Technical Tailwinds May Lift EMFX

Emerging markets central banks are beating their developed market counterparts to hiking interest rates, and while that might be a turn-off for investors considering developing markets debt, it doesn't need to be. In fact, hawkish emerging markets central banks could be catalysts for exchange traded funds, including the VanEck J.P.

EM Rate Hikes Could Be Promising for This Bond ETF

Vanguard Total US Bond Market (BND) bucked the trend and posted a fractional 0.05% weekly gain. There are signs in early trading today (Mon., Nov 29) that global markets are stabilizing after Friday's rout.

News for VanEck J.P Morgan EM Local Currency Bond ETF ETF (EMLC)