Emerging Markets Bonds
Like international bond ETF’s, emerging market bond ETF’s are correlated to the value of foreign bonds. Unlike international bond ETF’s, these are for countries whose economy or currency may not be as established as somewhere like the European Union. These ETF’s are appealing for many of the same reasons as US government bond ETF’s, and are an option for anyone who doesn’t wish to invest domestically. One advantage that they have over international bond ETF’s is that they are mostly traded in US dollars. This means that fluctuations in the value of the local currency won’t hurt or benefit the ETF’s value.
