The iShares Latin America exchange - traded fund (ILF) was down 1.9 % in recent trading, while the iShares MSCI Emerging Markets ETF (EEM) was down 1.6 %, while the iShares JPMorgan USD Emerging Markets Bond ETF (EMB), the Market Vectors Emerging Markets High Yield Bond ETF (HYEM) and the PowerShares
Emerging Markets Sovereign Debt ETF (PCY) were flat.
The Powershares
Emerging Markets Sovereign Debt Portfolio (PCY) is up 10 %, and has been the best performer in price among the aforementioned funds over the past month, up 5 %, followed by a 4 % rise in EMB.
Spreads on US corporate debt have generally fallen to levels last seen before the 2001 US recession (Graph 16), while spreads
on emerging market sovereign debt have returned to levels last prevailing in the months prior to the Asian crisis in 1997 (Graph 17).
She said there are more profitable ways than cash to mitigate portfolio risk, including dividend - paying stocks, exchange - traded funds, high - yield corporate bonds and
emerging market sovereign debt ETFs.
The increasingly positive outlook for the global economy and the associated reduction in risk aversion have continued to help corporate and
emerging market sovereign debt.
Both corporate and
emerging market sovereign debt spreads are now quite tight compared to their historical averages.
Naturally, she believes ETFs that hold high - yield corporate bonds,
emerging market sovereign debt or dividend - paying stocks are all better choices for long - term investors.
These sectors are U.S. Treasurys, global treasurys ex-U.S., U.S. investment - grade corporate bonds, U.S. mortgage - backed securities, U.S. high - yield corporate bonds and
emerging market sovereign debt.