The third-quarter was all about peaks and valleys in the U.S.-China trade tensions, resurfacing global growth worries and a barrage of rate cuts. Central banks in South Korea, Indonesia, India, Turkey and South Africa resorted to rate cuts in order to keep signs of a slowdown at bay.
Notably, top Asian exporters like Singapore, Japan and South Korea have been experiencing low exports amid trade tensions. Sinceseveral emerging markets had resorted to rate cuts in the third quarter, emerging market bonds displayed a better show in the quarter.
Against this backdrop, below we highlight a few bond ETFs that topped the list emerging market securities list in the third quarter (see all emerging market bond ETFs here).
JPMorgan (NYSE:JPM) USD Emerging Markets Sovereign Bond ETF JPMB – Up 3.1%
The underlying JPMorgan Emerging Markets Risk-Aware Bond Index is comprised of liquid, U.S. dollar-denominated sovereign and quasi-sovereign fixed and floating rate debt securities from emerging markets selected using a rules-based methodology. Sovereign bonds take about 82.4% of the fund, followed by foreign agency (13.7%). The fund charges 39 bps in fees (read: Global Policy Easing Cycle Set in Motion: ETFs to Win).
Invesco Emerging Markets Debt Value ETF IEMV – Up 2.7%
The underlying Invesco Emerging Markets Debt Value Index provides exposure to higher value, emerging markets debt securities. Brazil (10.3%), Mexico (10.2%) and Russia (10.2%) are the top three countries of the fund. The fund charges 29 bps in fees.
Invesco BulletShares 2024 Emerging Markets Debt ETF (JK:BSDE) – Up 1.9%
The underlying Nasdaq Bulletshares USD Emerging Markets Debt 2024 Index represents the performance of a held-to-maturity portfolio of US dollar-denominated, emerging markets bonds with effective maturities in 2024. Mexico (11.8%), United Arab Emirates (10.1%) and Turkey (9.7%) hold top three spots in the fund. The fund holds 27.4% weight in the sovereign debt, followed by 15.8% in the financials sector, 13.4% in energy and 12.6% utilities. The fund charges 29 bps in fees.
Invesco BulletShares 2023 USD Emerging Markets Debt ETF BSCE – Up 1.8%
The underlying Nasdaq Bulletshares USD Emerging Markets Debt 2023 Index represents the performance of a held-to-maturity portfolio of US dollar-denominated, emerging markets bonds with effective maturities in 2023. Mexico (11.8%), United Arab Emirates (10.1%) and Turkey (9.7%) are the three key holdings of the fund. Sovereign debt (27.14%) takes the top spot in the fund, followed by financials (26.5%) and energy (18.5%). The fund charges 29 bps in fees.
iShares J.P. Morgan EM Corporate Bond ETF (MI:CEMB) – Up 1.7%
The underlying JP Morgan CEMBI Broad Diversified Core Index tracks the performance of the U.S. dollar denominated emerging market corporate bond market. China (9.1%), Brazil (6.8%) and Mexico (5.7%) are the top three countries of the fund. No securities accounts for more than 2% of the fund. Industrial (43.6%), Agency (30.2%) and Financial Institutions (20.8%) are the top three areas of the fund. The fund charges 50 bps in fees.
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Invesco Emerging Markets Debt Value ETF (IEMV): ETF Research Reports
JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB): ETF Research Reports
Invesco BulletShares 2024 USD Emerging Markets Debt ETF (BSDE): ETF Research Reports
iShares J.P. Morgan EM Corporate Bond ETF (CEMB): ETF Research Reports
Invesco BulletShares 2023 USD Emerging Markets Debt ETF (BSCE): ETF Research Reports
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Zacks Investment Research