As the U.S. market slowly wanders towards the road to recovery, many investors who had avoided the short term effects of the recession are now left scratching their heads, looking for a long term solution for slow American economic growth without risking everything. One option is to look through emerging market bonds, which often offer growth potentialunparalleledin the U.S., without the risk of emerging equities. The Pro member download from the Emerging Markets Bonds ETFdb Category page can be used to highlight the Emerging Markets Bonds ETFs with the lowest expenses, highest dividend yields, and best historical performance .
Cheapest Emerging Markets Bonds ETFs
Some funds charge as little as 39 basis points while others have expense ratios of up to .65% annually.
|Emerging Markets Bonds ETFdb Category|
|Number of ETFs||14|
|ER Range||0.39% to 0.65%|
|Total Assets||$14 billion|
|As of 1/16/13|
Commission Free Emerging Markets Bonds ETFs
There are five ETFs in the Emerging Markets Bonds ETFdb Category that are eligible for commission free trading, including:
- Asia Local Debt Fund (ALD): E*TRADE
- Emerging Markets Local Debt Fund (ELD):E*TRADE
- JP Morgan Emerging Markets Bond Fund (EMB): Fidelity
- Emerging Markets Corporate Bond Fund (EMCB):E*TRADE
- Emerging Markets Sovereign Debt Portfolio (PCY):TD Ameritrade
Most Heavily Traded Emerging Markets Bonds ETF
On an average day, the ETFs in the Emerging Markets Bonds ETFdb Category trade more than two million shares. The most heavily traded ETF in this category is often between the Emerging Markets Sovereign Debt Portfolio (PCY) and the USD Emerging Markets Bond Fund (EMB); both trade an average of 870,000 shares a day.
|Realtime Ratings: Emerging Markets Bonds ETFs|
|Liquidity||Emerging Markets Sovereign Debt Portfolio (PCY)||A+|
|Expenses||Market Vectors Renminbi Bond ETF (CHLC)||A+|
|Performance||Emerging Markets Sovereign Debt Portfolio (PCY)||A+|
|Volatility||Chinese Yuan Dim Sum Bond Portfolio (DSUM)||A+|
|Dividend||LatAm Aggregate Bond ETF (BONO)||A+|
|Concentration||SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND)||A+|
Best Performing Emerging Markets Bonds ETFs
The performance of Emerging Markets Bonds ETFs is all over the board, especially during the last year. As of January 10th, the best performing Emerging Markets Bonds ETFs are as follows:
|1 Year||Emerging Markets Sovereign Debt Portfolio (PCY)||+21.62%|
|3 Years||Emerging Markets Sovereign Debt Portfolio (PCY)||+44.14%|
|5 Years||Emerging Markets Sovereign Debt Portfolio (PCY)||+62.64%|
|As of 1/10/13|
Highest Yielding Emerging Markets Bonds ETFs
Emerging Markets Bonds ETFs aren't generally known for high dividend payouts, but some products in this ETFdb Category have meaningful dividend yields:
- LatAm Aggregate Bond ETF (BONO): 4.83%
- Emerging Markets Sovereign Debt Portfolio (PCY): 4.62%
- SPDR Barclays Captal Emerging Markets Local Bond ETF (EBND): 4.46%
Most Balanced Emerging Markets Bonds ETFs
When comparing potential ETF investments, it is important to evaluate how deep and balanced the underlying portfolios are. Depth refers to how many individual securities comprise an ETF, while balance refers to how top heavy a product iswhat percentage of assets are concentrated in the ten largest individual positions.
- Deepest Emerging Markets Bonds ETF: The SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND) has approximately 230 individual holdings. TheMarket Vectors Renminbi Bond ETF (CHLC) isthe shallowest ETFs, with only 20 individual holdings.
- Most Balanced Emerging Markets Bonds ETF: Emerging Markets Corporate Bond (CEMB) has just 12% of its 170 holdings in the top ten positions. At the other end of the spectrum, the Market Vectors Renminbi Bond ETF (CHLC)has over 65% of assets in the top ten stocks.
Disclosure: No positions at time of writing.
Mutual Funds & ETFsLearn more about the PowerShares FTSE RAFI Emerging Markets ETF, a fundamentally weighted fund that tracks emerging market equities.
Mutual Funds & ETFsLearn more about the iShares California AMT-Free Municipal Bond exchange-traded fund, a popular tax-advantaged ETF that dominates its category.
Mutual Funds & ETFsLearn more about the SDPR S&P Emerging Markets Dividend Fund, a yield-focused exchange-traded fund tracking global emerging economies.
Mutual Funds & ETFsFind out about the First Trust Dow Jones Global Select Dividend Index Fund, and learn detailed information about characteristics and suitability of the fund.
Mutual Funds & ETFsLearn about the United States 12 Month Natural Gas Fund, an exchange-traded fund that invests in 12-month futures contracts for natural gas.
Mutual Funds & ETFsExplore detailed analysis and information of the iShares Floating Rate Bond ETF, and learn how to use this ETF as a defense against rising interest rates.
Mutual Funds & ETFsFind out information about the ProShares UltraPro Short S&P 500 exchange-traded fund, and learn detailed analysis of its characteristics and suitability.
Mutual Funds & ETFsLearn more about the SPDR Barclays Investment Grade Floating Rate Fund, which tracks an index of highly rated floating debt securities.
Mutual Funds & ETFsLearn more about a unique and innovative exchange-traded fund (ETF) in the biotechnology industry: the ALPS Medical Breakthroughs Fund.
Mutual Funds & ETFsLearn about the iShares U.S. Healthcare exchange-traded fund, which invests in a wide range of health care providers, hospitals and home care facilities.
The value of an asset less the value of all liabilities on that ...
A security that tracks an index, a commodity or a basket of assets ...
Investopedia explains the definition of exchange-traded mutual ...
An alternative investment theory to Efficient Market Hypothesis ...
An asset that is extremely difficult to dispose of either due ...
When an investor has essentially risked all of his capital for ...
When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>