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Anybody know any good international corporate bond ETF's?



March 07, 2012 – Comments (5)

...or a good place to dig up good data on such things on the cheap?

I wonder, also, whether there's a good way to get exposure to emerging markets small-caps without getting a larger weighting of large caps - that sort of thing.

5 Comments – Post Your Own

#1) On March 07, 2012 at 8:49 AM, somrh (85.17) wrote:

DGS is a small-cap emerging ETF. I believe it restricts itself to only dividend payers.

Per Morningstar, 90% of the fund is either small or mid cap.

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#2) On March 08, 2012 at 12:56 AM, FleaBagger (27.55) wrote:

Thanks! Now, does anybody know how to find a good int'l bond fund?

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#3) On March 10, 2012 at 11:10 AM, HarryCaraysGhost (68.06) wrote:

I just typed in international corporate bonds.

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#4) On March 19, 2012 at 2:02 AM, FleaBagger (27.55) wrote:

Thanks! But what does it mean"dollar-denominated corporate bonds from issuers in the developing world"? I'm afraid it means that the underlying bonds (and thus the ETF) would suffer a similar drop in purchasing power along with the drop I expect to see in the dollar. I would much rather have an ETF that offers exposure to locally-denominated corporate bonds from issuers in the developing world. With the latter, a drop in the dollar relative to the average of the currencies represented in the basket would result in a sharp increase in the nominal dollar value of the ETF, and thus a preservation of purchasing power.

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#5) On March 19, 2012 at 2:17 AM, FleaBagger (27.55) wrote:

Oops! I posted that comment before finishing the article and coming across this paragraph:

"Many of WisdomTree’s existing fixed income products, such as the Emerging Markets Local Debt Fund (ELD) and Asia Local Debt Fund (ALD), focus on individual bonds that are denominated in the local currency of the issuers. EMCB, however, will target dollar-denominated debt, thereby removing the impact of exchange rate fluctuations on returns. That feature results largely from the current state of the debt markets in emerging economies; many corporations continue to issue bonds primarily in U.S. dollars, and in many cases there is not yet a liquid market for securities denominated in the local currency. The development of local currency denominated sovereign debt in many emerging markets is still a relatively recent phenomenon, so it could be several more years before it’s realistic to access local currency corporate bonds through an ETF [see Emerging & Frontier Markets ETFdb Portfolio]."

Any thoughts on ELD?

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