This year has been another miserable one for emerging markets stocks, but some emerging markets bond exchange traded funds have been noticeably less worse. For example, the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: PCY) is up more than 2 percent year-to-date while the rival iShares JPMorgan USD Emerging Markets Bond ETF (NYSE: EMB) is lower by just 1.9 percent.
However, with the WisdomTree Emerging Currency Strategy Fund (NYSE: CEW) down more than 10 percent, the story is different for emerging markets bond ETFs denominated in local currencies. The specter of the Federal Reserve increasing interest rates coupled with speculation of additional credit downgrades throughout the developing world, a fate recently suffered by Brazil, are among the issued plaguing local currency bond funds.
Those reasons and others underscore why an ETF such as the WisdomTree Emerging Markets Local Debt Fund (NYSE: ELD) is off 14 ...
/www.benzinga.com/trading-ideas/long-ideas/15/09/5860191/value-in-an-emerging-markets-bond-etf alt=Value In An Emerging Markets Bond ETF>Full story available on Benzinga.com
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