These Are the Top Ten Emerging Markets Bonds

April
23, 2021

4 min read

This story originally appeared on ValueWalk

Emerging market bonds have grown popular in recent times. These are the bonds that are issued by developing countries and the companies operating within those countries. Such bonds offer a higher return than U.S. corporate and Treasury bonds, but they come with an increased level of risk in comparison to domestic debt instruments. If you are interested in investing in such bonds, then detailed below are the top ten emerging markets bonds.

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Top Ten Emerging Markets Bonds

We have used the past one year return data (from U.S. News) to come up with the list of top ten emerging markets bonds. Following are the top ten emerging markets bonds:

10. Ashmore Emerging Markets Corporate IncFd (ECDAX, 6%)

ECDAX aims to maximize total return. Under normal market conditions, this bond mainly invests in the debt instruments of corporate issuers. This bond has a net expense ratio of 1.47%. ECDAX has given a return of 5.18% in the last decade, 9.88% in five years and 4.65% in three years. It has $313.75 million in total assets.

9. Payden Emerging Markets Corp Bd Fund (PYCIX, 7%)

PYCIX’s objective is to earn a high level of total return. During normal times, this bond invests a minimum of 80% of its assets in corporate bonds related to the emerging markets. This bond has a net expense ratio of 0.85%. PYCIX has given a return of 6.88% in five years and 5.67% in three years. It has $52.42 million in total assets.

8. Aperture New World Opportunities Fund (ANWOX, 7%)

ANWOX seeks a total return that includes current income and capital appreciation. It mainly puts money in currencies, equity securities and fixed income securities related to the emerging markets. This bond has a net expense ratio of 0.5%. ANWOX has $375.09 million in total assets.

7. Principal Finisterre EmMkts TR Bd Fd (PFUEX, 7%)

PFUEX aims to generate a total return from current income, as well as capital appreciation. This fund invests at least 80% of its assets in bonds and other fixed-income securities that are related to the emerging markets. This bond has a net expense ratio of 1.2%. PFUEX has given a return of 5.87% in three years.

6. Stone Harbor Emerg Mkts Corp Dbt Fd (SHCDX, 8%)

SHCDX aims to maximize total return, which includes capital appreciation and income on its investments. Under normal times, the fund invests a minimum of 80% of its net assets in fixed and floating rate debt securities of the floating rate debt. This bond has a net expense ratio of 1.01%. SHCDX has given a return of 6.97% in five years and 5.60% in three years.

5. Voya Emerging Markets Corporate Debt Fd (IMCDX, 8%)

IMCDX aims to maximize the total return by way of capital appreciation, as well as current income. During normal times, the bond invests a minimum of 80% of its net assets in fixed-income and floating rate debt instruments issued by corporate issuers in the emerging markets. This bond has a net expense ratio of 0.09%. IMCDX has given a return of 7.47% in five years and 6.93% in three years.

4. Eaton Vance Emerging Markets Dbt Opps Fd (EADOX, 8%)

EADOX seeks total return. Under normal times, it puts at least 80% of its assets in the income instruments issued by entities connected to the emerging markets; and derivative instruments denominated or based on the emerging market currencies. This bond has a net expense ratio of 1.15%. EADOX has given a return of 8.81% in five years and 6.03% in three years. It has $880.61 million in total assets.

3. VanEck Emerging Markets Bond Fund (EMBAX, 10%)

EMBAX aims to maximize total returns, including income and capital appreciation. During normal market conditions, this fund invests a minimum of 80% of its net assets in emerging market debt securities. This bond has a net expense ratio of 1.25%. EMBAX has given a return of 6.31% in five years and 4.64% in three years. It has $28.37 million in total assets.

2. Vanguard Emerging Markets Bond Fund (VEMBX, 10%)

VEMBX aims to generate a return, as well as offer a moderate level of current income to investors. Under normal times, the fund invests a minimum of 80% of its assets in fixed income securities issued by entities connected to the emerging markets. This bond has a net expense ratio of 0.6%. VEMBX has given a return of 9.59% in three years.

1. Barings Emerg Mkts Dbt Blnded Ttl Ret Fd (BXEAX, 13%)

BXEAX’s invests a minimum of 80% of its net assets in securities priced in the currencies of emerging markets; fixed income securities or debt instruments issued by the companies in the emerging markets; as well as the debt instruments based on the currency and interest rates of the emerging markets. This bond has a net expense ratio of 1.2%. BXEAX has given a return of 9.61% in five years and 7.71% in three years.