VanEck J.P. Morgan Emerging Markets Local Currency Bond

ETF description

This ETF provides exposure to government bonds issued by emerging market countries, with the bonds being denominated in the local currencies of these nations. Investing in local currency bonds allows investors to benefit from both bond returns and potential currency fluctuations. As emerging markets can experience higher growth rates than developed markets, these bonds often offer higher yields. However, they may also carry additional risks, such as currency volatility and political instability.

This ETF may appeal to investors who are seeking income from bond investments but are also willing to take on more risk for potentially higher returns.

Issuer details

VanEck is a globally recognized asset management firm, managing over $85 billion in assets as of June 2024. VanEck offers a wide range of investment products covering various market segments. Founded in 1955 by John C. van Eck, the firm has a strong expertise in commodities and emerging markets. VanEck is also committed to investor education and transparency. Notable ETFs include the VanEck Gold Miners ETF (GDX), the VanEck Semiconductor ETF (SMH), and the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL), reflecting VanEck’s dedication to offering diverse and cutting‑edge investment solutions.

Index details

The Emerging Markets Local Currency Bond index offers targeted exposure to government and corporate bonds issued in the local currencies of emerging market countries. By focusing on bonds denominated in local currencies, this index aims to capture potential returns from emerging market debt while mitigating currency risk through direct investment in local markets. Its emphasis on local currency‑denominated bonds provides a valuable opportunity for portfolios seeking to benefit from the growth and diversification potential within emerging market economies.