Fixed income exchange-traded funds are enjoying plenty of enthusiasm for investors this year. Flows data confirm as much, but advisors and investors keep pumping cash into U.S. Treasury ETFs. That does not change the fact short and middle duration Treasury ETFs are more defensive than legitimate yield plays.
Emerging Markets' Sovereign Debt
ETFs holding emerging markets' sovereign debt are where stout yields are found among government bond funds. For example, the $8.1 billion iShares JPMorgan USD Emer Mkt Bnd Fd ETF(NYSE: EMB), now the largest emerging market bond fund in the world, sports a 30-day SEC yield of 4.62 percent. In a world of low yields on U.S. Treasurys and negative yields in other parts of the developed world, EMB tempts.
With good reason. Brexit significantly reduced the chances of the Federal ...
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