SPDR Bloomberg Emerging Markets Local Bond ETF (ARCA: EBND)

Últimas noticias sobre SPDR Bloomberg Emerging Markets Local Bond ETF (ARCA:EBND)

SPDR Bloomberg Emerging Markets Local Bond ETF

SPDR Bloomberg Barclays Emerging Markets Local Bond ETF

Under normal market conditions, the Fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the Index and in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the Index. In addition, in seeking to track the Index, the Fund may invest in debt securities that are not included in the Index, cash and cash equivalents or money market instruments, such as repurchase agreements and money market funds (including money market funds advised by the Adviser).

As U.S. Treasuries wobble under the weight of budget deficits and rate uncertainty, <a href="https://in.benzinga.com/markets/emerging-markets">emerging market debt</a> is quietly staging a comeback — offering higher real yields, currency resilience, and inflation breathing room.
Investors accustomed to reflexively retreating to Treasuries in times of volatility are reconsidering. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) is down over 8% over the past year, and still negative year-to-date.
In contrast, EM debt ETFs are showing strength: the iShares JP Morgan EM Local Currency Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEMB#NYSE">LEMB</a>) is up nearly 10% year-to-date, while the VanEck JP Morgan EM Local Currency Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMLC#NYSE">EMLC</a>) and the SPDR Bloomberg Emerging Markets Local Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EBND#NYSE">EBND</a>) have returned over 7%.
Even more compelling? These gains come as local inflation trends across emerging markets soften, not heating up.
Read Also: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/06/46064634/vanguard-slashes-fees-across-european-fixed-income-ucits-etfs-enhancing-low-cost-investing-options">Vanguard Slashes Fees Across European Fixed Income UCITS ETFs, Enhancing Low-Cost Investing Options</a>
<h3 class="wp-block-heading">Real Yield Advantage Is Back</h3>
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="611" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355-1024x611.png" alt="" class="wp-image-959609" style="width:736px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355-1024x611.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355-300x179.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355-768x458.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355-1536x916.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/24065955/image-355.png 1979w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The numbers tell the story:
<ul class="wp-block-list">
<li>Brazil&#8217;s 10-year government bond yields sit at a jaw-dropping 13.84%, while inflation has cooled to 5.32% &#8211; still above target but declining. That's a real yield north of 8%. </li>
<li>India's 10-year yield is 6.36% with inflation just 2.82%.</li>
<li>Indonesia yields 6.76% against inflation of 1.6%.</li>
</ul>
Compare that with the U.S., where 10-year yields are 4.35% and inflation ticked up to 2.4% in May, after four straight months of decline. While still moderate, the uptick &#8211; driven by food and transportation &#8211; suggests limited near-term relief for real yields. Core inflation held steady at 2.8%, reinforcing the Fed's cautious stance.
In short, emerging markets are offering stronger inflation-adjusted returns, with less policy ambiguity.
<h2 class="wp-block-heading">Currency Strength Adds Another Layer</h2>
For years, dollar dominance made EM debt vulnerable. Not anymore. 
The DXY dollar index is down nearly 10% YTD, and Brazil's real has strengthened over 11% against the dollar, boosting total return potential. 
While India and Indonesia have seen more stable currencies, their resilience against the greenback is still a win in the EM debt playbook.
<h2 class="wp-block-heading">Rate Cut Room &amp; Policy Stability</h2>
With inflation falling and real yields rising, central banks in emerging economies now have room to cut rates &#8211; a powerful tailwind for bond prices. 
India's CPI just hit a six-year low, Brazil is inching toward its inflation target, and Indonesia remains firmly within its policy range. 
That's in stark contrast to the U.S., where the Fed remains caught between stickier core inflation and concerns over fiscal slippage.
<h2 class="wp-block-heading">How To Play It</h2>
For investors looking to diversify income streams and hedge against dollar volatility:
<ul class="wp-block-list">
<li>LEMB: Up 9.88% YTD, offers broad exposure to sovereign debt in local currency.</li>
<li>EMLC: Up 7.43% YTD, tracks J.P. Morgan's benchmark for EM local debt.</li>
</ul>
These funds also benefit from exposure to stronger currencies and improving macro fundamentals.
U.S. Treasuries may still be the default play for safety, but in 2025, the risk-adjusted returns are flowing toward emerging markets. 
With inflation falling, currencies stabilizing, and yields sky-high, EM debt isn&#8217;t just an alternative anymore &#8211; it might just be the new safe haven.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/06/46014647/wall-street-watches-as-money-flows-out-of-us-markets-is-the-great-rotation-here">Wall Street Watches As Money Flows Out Of US Markets — Is The &#8216;Great Rotation&#8217; Here?</a></li>
</ul>
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Bonds

Emerging Markets

Markets

EBND

Market Vectors Emerging Markets Local Currency Bond ETF

EMLC

LEMB

iShares Trust Barclays 20+ Year Treasury Bond Fund

Bond Bulls Look To Brazil, India, Indonesia As Emerging Market Debt Rallies

The Fed may have enacted three rate hikes this year but geopolitics and mixed U.S. economic readings have kept U.S. Treasury yields at check.&nbsp;U.S. benchmark Treasury bond yields have hovered in the range of 2.05% to 2.62% this year (as of Dec 27, 2017), with an average of 2.33%.
Trump&#39;s policy uncertainty in the middle of the year and Fed minutes, which showed policymakers&#39; suspicion about subdued inflation, probably led to this move in the fixed income market. Though the economy picked up pace in the fourth quarter, President Trump passed the tax reform agenda and the Fed enacted its final hike, average bond yields (2.37%) did not shoot up materially.&nbsp;
This was because, with Fed officials sticking to their outlook for three more rate hikes in 2018 despite speeding economic growth, there is no spark in the guidance either. In fact, an air of dovishness was prevalent. The median Fed funds rate for this year and the next were unchanged (read: <a href="https://www.zacks.com/stock/news/286001/etf-winners-amp-losers-post-partly-dovish-fed-meet">ETF Winners &amp; Losers Post Partly Dovish Fed Meet</a>).
As a result, bond funds returned decently in 2017. PIMCO 25+ Year Zero Coupon US Treasury ETF ZROZ returned about 12% this year against 19.6% returns in SPDR S&amp;P 500 ETF SPY.
However, there are several international bond ETFs that offered great returns during this time frame. Since most of the developed economies are still practicing a low interest rate policy, international bonds got a chance to roar even higher. Against this backdrop, below we highlight a few top-performing bond ETFs.
iShares International High Yield Bond ETF HYXU &ndash; Up 17.8%
The underlying Markit iBoxx Global Developed Markets ex-US High Yield Index is a rules-based one, consisting of high yield corporate bonds denominated in Euros, British pounds sterling and Canadian dollars. The index is designed to provide a broad representation of the global ex-U.S. dollar high yield corporate bond market. The fund charges 40 bps in fees.
SPDR Bloomberg Barclays International Corp Bond ETF IBND &ndash; Up 13.5%
The 618-security fund looks to provide broad exposure to the global investment grade, fixed rate, fixed income corporate markets outside the United States. The fund charges 50 bps in fees. Average maturity in years is 6.61, while adjusted duration is 5.82 years.&nbsp;
PowerShares International Corp Bond ETF PICB &ndash; Up 11.3%
The underlying index measures the performance of investment grade corporate bonds issued by non-U.S. issuers. The 411-stock fund charges 50 bps in fees. Years to Maturity of the fund is 9.32 and effective duration is 7.31 years.
SPDR Bloomberg Barclays Emerging Markets Local Bond ETF EBND &ndash; Up 11.1%
The underlying index &ndash; the Bloomberg Barclays EM Local Currency Government Diversified Index &ndash; is designed to measure the performance of the fixed-rate local currency sovereign debt of emerging market countries. The fund looks to offer exposure to fixed-rate local currency sovereign debt of emerging market countries. It charges 40 bps in fees. Average maturity of the fund is 7.36 years and adjusted duration is 5.29 years.
VanEck Vectors JP Morgan EM Local Bond ETF EMLC &ndash; Up 7.5% 
The fund comprises 266 bonds issued by emerging market governments and denominated in the local currency of the issuer. The fund charges 44 bps in fees. Years to Maturity of the fund is 7.65 and effective duration is 5.10 years. The fund yields about 5.34% annually (as of Dec 27, 2017) (read: <a href="https://www.zacks.com/stock/news/271415/em-etfs-what-you-need-to-know-before-investing">EM ETFs: What You Need to Know Before Investing</a>).
<img alt="" src="https://staticx-tuner.zacks.com/images/zadmin_tuner_image/bond etfs chart.jpg" style="width: 620px; height: 166px;" />

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Specialty ETFs

ETFs

HYXU

SPDR Barclays Capital Internationalorate Bond ETF

IBND

PICB

PIMCO 25+ Year Zeroupon US Treasury Index Fund

ZROZ

5 Best Bond ETFs Of 2017

The ETF of ETFs approach continues gaining popularity as another such exchange traded fund joined that mix Thursday with the debut of the SPDR Dorsey Wright Fixed Income Allocation ETF (NASDAQ: DWFI).

	The SPDR Dorsey Wright Fixed Income Allocation ETF is the first ETF from State Street Global Advisors (SSgA), the third-largest U.S. ETF issuer, to trade on the Nasdaq. DWFI follows the Dorsey Wright Fixed Income Allocation Index, which &ldquo;is designed to provide targeted exposure to the SPDR fixed income ETFs that offer the greatest potential to outperform the other SPDR fixed income ETFs included in the Index selection universe. Dorsey, Wright &amp; Associates&rsquo; proprietary Index methodology ranks each SPDR fixed income ETF by relative strength and selects the four top-ranked SPDR ETFs for an initial equal weighted inclusion,&rdquo; <a href="http:// http://www.businesswire.com/news/home/20160602006214/en/State-Street-Global-Advisors-Expands-ETF-Offering">according to a statement</a>.

	DWFI holds five other SSgA fixed income ETFs, including the SPDR Wells Fargo Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/psk#NYSE">PSK</a>). PSK is DWFI&#39;s largest holding at a weight of 25.2 percent. DWFI&#39;s second-largest holding is an allocation of almost 25 percent to the SPDR Nuveen Barclays Municipal Bond ETF (NYSE: <a class="ticker" href="/stock/tfi#NYSE">TFI</a>).

	DWFI also holds the SPDR Barclays Emerging Markets Local Bond ETF (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>), SPDR Barclays International Treasury Bond ETF (NYSE: <a class="ticker" href="/stock/bwx#NYSE">BWX</a>) and the SPDR Barclays Intermediate Term Corporate Bond ETF (NYSE: <a class="ticker" href="/stock/itr#NYSE">ITR</a>).

	DWFI&#39;s selection universe can include US and non-US developed and emerging market bonds, treasury bonds, corporate bonds, high yield bonds, inflation-protected bonds, floating rate notes, first lien senior secured floating rate bank loans, US nonconvertible preferred stock and other preferred securities, US municipal bonds and US convertible securities, according to SSgA.

	The new ETF charges 0.6 percent a year, or $60 per $10,000 invested.

Long Ideas

News

New ETFs

Intraday Update

Trading Ideas

SPDR Barclays Capital Intermediate Term Credit Bond ETF

Get 5 Bond Funds In 1 With This New ETF

The iShares MSCI Mexico Capped Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>), along with other ETFs with significant exposure to Latin America's second-largest economy, should be in focus today after Fitch Ratings boosted Mexico's credit rating to BBB+ from BBB. The Fitch rating, the third-lowest in investment-grade territory, is comparable to Moody's Investors Service's Baa1 rating.

	Fitch's move follows Standard &amp; Poor's raising its outlook on its BBB rating of Mexico in March. Not surprisingly, Fitch cited legal and tax reforms being pushed by Mexican President Enrique Pena Nieto as a prime reason for its upgrade.

	The idea of those reforms, which include labor legislation <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3095801/labor-reform-bolsters-long-term-bull-case-for-mexico-etf">that has helped Mexico pilfer</a> manufacturing jobs from China has had a meaningful impact on EWW. In the past six months, the ETF has gained 11.5 percent, better than triple the gains of the iShares MSCI Brazil Capped Index Fund (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>).

	Investors have taken notice. On November 15, 2012, EWW had $1.4 billion in assets under management. As of May 8, that number had almost tripled to $3.16 billion, <a href="http://us.ishares.com/product_info/fund/overview/EWW.htm?fundSearch=true&amp;qt=EWW">according to iShares data</a>.

	Amid expectations for slower growth, Banco de Mexico <a href="http://www.benzinga.com/markets/bonds/13/03/3400543/mexico-etf-rises-after-surprise-rate-cut">surprisingly lowered interest rates by 50 basis points to four percent in March</a>. However, central bank Governor Agustin Carstens said growth could reach 6.5 percent in the future on the back of the labor and legal reforms.

	Bonds 
	The impact of the Fitch ratings increase on Mexican government bonds, <a href="http://www.benzinga.com/markets/bonds/13/02/3310348/gross-peso-tweet-not-doing-much-for-em-bond-etfs">a favorite of PIMCO's Bill Gross</a>, remains to be seen. Mexican 10-years had a yield of 2.52 percent, a 71-basis point premium to the comparable U.S. Treasurys, as of Wednesday's close, according to Bloomberg data. That is well below the emerging markets average yield of 4.56 percent seen on sovereign debt just a month ago.

	Still, investors have found Mexican sovereigns to be a compelling asset class and it is one that can be accessed through several ETFs.

	The Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>) allocates 26 percent of its weight to Mexico. Additionally, five of BONO's top-10 holdings are Mexican issues and 15.6 percent of the ETF's weight is denominated in Mexican pesos. BONO has grown impressively this year from <a href="http://www.benzinga.com/markets/bonds/13/01/3267133/got-pesos-use-these-etfs-for-attractive-mexican-bonds">$26.1 million in AUM in January</a> to $47.6 million as of May 8. The ETF has a 30-day SEC yield of 4.41 percent and an effective duration of 6.31 years.

	Another Market Vectors fund, the $1.5 billion Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: <a class="ticker" href="/stock/emlc#NYSE">EMLC</a>) features a 6.2 percent weight to Mexico with a 30-day SEC yield of 4.46 percent. EMLC's effective duration is 4.99 years.

	Among local currency bond ETFs, the SPDR Barclays Emerging Markets Local Bond ETF (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>) does not grab a lot of press. However, EBND is not small with almost $165 million in AUM and offers decent exposure to Mexico with a 9.53 percent weight to the country. EBND has a 30-day SEC yield of 4.43 percent and a modified adjusted duration of 5.07 years, <a href="https://www.spdrs.com/product/fund.seam?ticker=EBND">according to State Street data</a>.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Short Ideas

Upgrades

Emerging Market ETFs

Currency ETFs

Events

Global

Analyst Ratings

BONO

Mexico ETFs in Focus After Ratings Upgrade

Shares of discount broker Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>) are higher by nearly one percent and touched a new 52-week higher earlier today after the company unveiled substantial additions to its commission-free ETF lineup.

Under a new platform known as Schwab ETF OneSource, the California-based brokerage firm will, starting today, allow its clients to buy and sell 105 ETFs with $0 online trade commissions. Schwab has allowed its clients to trade the firm's own ETFs commission-free since the firm first entered the ETF business several years ago.

"Just as Schwab Mutual Fund OneSource changed the landscape for investors and advisors by providing convenient, affordable access to leading mutual funds when Chuck Schwab introduced it twenty years ago, we believe Schwab ETF OneSource will deliver enormous benefit and change the way our clients buy and sell ETFs,” said Schwab CEO Walt Bettinger <a href="http://finance.yahoo.com/news/schwab-launches-schwab-etf-onesource-163000126.html">in a statement</a>.

Noteworthy is the fact that Schwab's commission-free lineup includes over 100 ETFs from a variety of issuers including State Street's (NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) State Street Global Advisors, the second-largest U.S. ETF sponsor. Schwab will also offer ETFs issued by Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares, Guggenheim ETF Securities and United States Commodity Funds as part of the Schwab ETF OneSource platform.

Schwab's new commission-free ETF program also looks to be a shot across the bow at rival brokers such as Fidelity, but the Schwab menu could be what impresses investors. For example, Fidelity does allow its clients to trade select iShares ETFs on a commission-free basis, though that <a href="https://www.fidelity.com/etfs/ishares">lineup is fairly limited</a> and none of the funds featured can be considered exotic.

TD Ameritrade (NYSE: <a class="ticker" href="/stock/amtd#NYSE">AMTD</a>) offers a <a href="http://research.tdameritrade.com/grid/public/etfs/commissionfree/commissionfree.asp">broader range of commission-free ETFs</a>, indicating that Schwab and TD Ameritrade could see their rivalry intensify as both aim to capture assets from cost-conscious ETF investors.

Schwab's commission-free <a href="http://www.schwab.com/public/schwab/investing/investment_help/investment_research/etf_research/etfs.html?&amp;path=/Prospect/Research/etfs/overview/oneSourceETFs.asp">ETF lineup includes</a> plenty of standard fare such as the Schwab U.S. Large-Cap Value ETF (NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>) and the Rydex S&amp;P 500 Equal Weight ETF (NYSE: <a class="ticker" href="/stock/rsp#NYSE">RSP</a>).

However, the Schwab ETF OneSource also features more exotic offerings such as the Guggenheim China Small-Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>) and the SPDR S&amp;P Emerging Latin America ETF (NYSE: <a class="ticker" href="/stock/gml#NYSE">GML</a>). Schwab OneSource's commission-free bond ETF menu is also among the deepest in the industry, including such funds as the PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>) and the SPDR Barclays Capital EM Local Bond ETF (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>) along more benign offerings such as the Schwab U.S. TIPS ETF (NYSE: <a class="ticker" href="/stock/schp#NYSE">SCHP</a>).

While OneSource's sector offerings do not include any of the popular Select Sector SPDRs, the group does feature nine of Guggenheim's equal-weight sector ETFs such as the Guggenheim S&amp;P Equal Weight Technology (NYSE: <a class="ticker" href="/stock/ryt#NYSE">RYT</a>).

OneSource also features a wide array of forex and commodities offerings, something not previously seen on other commission-free platforms. Seven Guggenheim forex ETFs can be traded commission-free on OneSource. Schwab's commission-free commodities offerings now include the U.S. Gasoline Fund (NYSE: <a class="ticker" href="/stock/uga#NYSE">UGA</a>), the ETF Physical Silver Shares (NYSE: <a class="ticker" href="/stock/sivr#NYSE">SIVR</a>) and the ETFS Physical Platinum Shares (NYSE: <a class="ticker" href="/stock/pplt#NYSE">PPLT</a>).

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Sector ETFs

Broad U.S. Equity ETFs

Commodities

Offerings

Forex

Movers

AMTD

BKLN

PPLT

Rydex ETF Trust Rydex S&P Equal Weight ETF

Rydex ETF Trust Rydex S&P Equal Weight Technology ETF

SCHP

SCHV

SCHW

SIVR

Schwab Unveils Massive Additions to Commission-Free ETF Lineup

Pacific Investment Management Co.'s Bill Gross has a <a href="http://www.benzinga.com/markets/bonds/13/01/3267133/got-pesos-use-these-etfs-for-attractive-mexican-bonds">well-documented affinity for Mexican debt and the country's currency, the peso</a>. 

With that sentiment being widely known throughout global bond markets, that might be the reason more bullish comment from Gross about the Mexican peso are not doing much today to lift ETFs that are heavy on Mexican bonds.

On Tuesday, Gross, founder of PIMCO, took to Twitter to praise Mexico's <a href="http://www.bloomberg.com/news/2013-02-05/mexico-peso-advances-as-pimco-s-gross-supports-great-currency-.html">low debt levels and stability in its target lending rate</a>. 

Peso fondness is nothing new from Gross. Last year, the bond manager <a href="http://www.benzinga.com/markets/bonds/12/06/2702422/etfs-bill-gross-might-like-bono-hdv-pbj">said investors should favor</a> "clean dirty shirt' sovereigns (U.S., Mexico and Brazil)."

Still, Gross reiterating his bullish view of the Mexican currency is not doing much today to help those ETFs that feature noticeable allocations to Mexican debt. Of that group, only the Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>) is trading higher today and only modestly so. 

The unheralded BONO has a 14.5 percent weight to peso-denominated Mexican sovereign debt. BONO has an average modified duration of 5.89 years and a 30-day SEC yield of 4.71 percent. 

The iShares Emerging Markets Local Currency Bond Fund (NYSE: <a class="ticker" href="/stock/lemb#NYSE">LEMB</a>) is trading slightly lower today. That ETF features a 7.41 percent weight to peso-denominated bonds, but investors should note South Korea and Brazil dominate this ETF, combing for 34 percent of its weight.

Those looking exposure to Mexican bonds without a full regional commitment to Latin America can consider the WisdomTree Emerging Markets Local Debt Fund (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>). ELD, the second-largest actively managed ETF on the market today, allocates about 10.6 percent of its weight to peso-denominated bonds making the peso the ETF's largest currency holding. About 88 percent of ELD's holdings are rated investment-grade. ELD is off a quarter of a percent today.

On above average turnover, the SPDR Barclays Emerging Markets Local Bond ETF (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>) is lower by nearly 0.7 percent, making it Wednesday's worst offender of the Mexico bond ETFs mentioned here. Mexico is EBND's third-largest country at nearly nine percent, trailing Brazil and South Korea.

South Korea could be the issue with EBND and LEMB today because on Tuesday the country's Financial Supervisory Service said foreign investors pulled $2.59 billion out of the country's financial markets last month, the highest level since December 2011, <a href="http://www.reuters.com/article/2013/02/04/korea-economy-foreign-funds-idUSL4N0B43ZI20130204">Reuters reported</a>.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Gross Peso Tweet Not Doing Much For EM Bond ETFs

Mexico, Latin America's second-largest economy behind Brazil, has a sovereign credit rating of BBB on the Standard &amp; Poor's scale. That is barely investment grade, but with little chance that rating will be altered for the worse, investors have been embracing Mexican bonds.

When yields on peso-denominated bonds due in 2022 closed at 5.09 percent on Monday, it was the lowest closing yield since July 23, <a href="http://www.bloomberg.com/news/2013-01-21/mexico-bond-yields-fall-to-six-month-low-on-flows-peso-declines.html">according to Bloomberg</a>. Falling yields mean rising prices, indicating that Mexican bonds have perhaps morphed from yield play to capital appreciation play.

Home to benign inflation, the lowest tax rate in the OECD and a record-low benchmark interest rate of 4.5 percent, Mexico's borrowing costs are low. Earlier this month, the country sold $1.5 billion worth of 30-year dollar-denominated bonds at just 4.19 percent. Demand was for twice of that amount <a href="http://www.reuters.com/article/2013/01/07/mexico-economy-bond-idUSL1E9C7BWX20130107">with most of that demand coming from the U.S.</a>.

For those that need more convincing that Mexican bonds merit consideration, remember that <a href="http://www.benzinga.com/markets/bonds/12/06/2702422/etfs-bill-gross-might-like-bono-hdv-pbj">PIMCO's Bill Gross has spoken glowingly about Mexican debt</a>. Last year, Gross named Mexico among the "clean dirty shirt" sovereigns along with the U.S. and Brazil. 

PIMCO is biggest holder of Mexican fixed-rate bonds due in 2021, 2022 and 2024, <a href="http://www.fa-mag.com/news/pimco-s-gross-gets-free-lunch-as-mexican-debt-tops-stocks-12918.html">according to Bloomberg</a>.

Investors looking to tap into the attractiveness of Mexican debt can do with the following ETFs.

Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>)
BONO has just $26.1 million in assets under management, a low enough number to keep devotees of superficial ETF metrics away. However, focusing on that number ignores some other crucial statistics <a href="http://www.benzinga.com/markets/bonds/12/10/2956219/low-volume-bond-etfs-thriving-too">such as the fact that BONO's AUM total has more than tripled since October 2012</a>.

Another important statistic, in addition to BONO's trailing 12-mont yield of 4.79 percent, is that peso-denominated issues account for 14.5 percent of the ETF's weight. Overall, Mexico represents nearly 29 percent of BONO's weight. 

Bottom line: BONO has one of the largest allocations to Mexican sovereigns of any ETF on the market today. The ETF's <a href="http://vaneck.com/funds/BONO.aspx">average modified duration is 6.1 years</a>.

SPDR Barclays Emerging Markets Local Bond ETF (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>)
The SPDR Barclays Emerging Markets Local Bond ETF is a somewhat unheralded option in the <a href="http://www.benzinga.com/markets/bonds/13/01/3229035/this-local-debt-etf-is-an-economic-growth-play">booming sub-segment that is local currency emerging markets bond ETFs</a>. However, that has not stopped EBND from returning over five percent in the past year. 

EBND features a current yield, the market value weighted average current coupon of the bonds in the portfolio divided by current market price of the bonds in the portfolio, of 5.65 percent and a modified adjusted duration of 4.98 years. Forty-two percent of EBND's portfolio is rated AA or A, so this fund does present significant credit risk to investors.

Mexico is the ETF's third-largest country weight at 8.63 percent, trailing only South Korea and Brazil. Other top-10 country exposures include Poland, Thailand and Russia.

Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: <a class="ticker" href="/stock/emlc#NYSE">EMLC</a>)
The Market Vectors Emerging Markets Local Currency Bond ETF is one of the kings of the emerging markets local currency bond ETF arena. That dominance is solidified not only be a 6.5 percent jump over the past year, but a rapid accumulation assets that has seen the ETF's AUM total jump to <a href="http://vaneck.com/funds/EMLC.aspx">almost $1.3 billion</a>.

Without a Mexico-specific bond ETF trading in the U.S., EMLC is a credible option for investors looking to get exposure to the country's bonds because the ETF allocates 10 percent of its weight to the country. That puts Mexico in a tie with Brazil, Poland and South Africa as the largest weights in the ETF.

Importantly, EMLC is useful beyond its exposure to Mexico. The ETF is a legitimate capital appreciation play in 2013 on the potential for higher credit ratings for <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/01/3245901/flap-with-s-p-doesnt-derail-turkey-etf">Turkey and the Philippines</a>, two countries that combine for over 11 percent of the fund's weight.

Nearly 60 percent of EMLC's holdings are rated investment grade and the fund's average modified duration is five years.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Got Pesos? Use These ETFs For Attractive Mexican Bonds

Some investors have been in the game long enough to remember the Latin American debt crisis of the early 1980s. At the height of the crisis, the region's most egregious offenders – Mexico, Brazil, Venezuela and Argentina - owed major banks nearly $180 billion.

Undoubtedly, many investors have not forgotten Argentina's economic crisis, which ended a decade ago. Earlier this month, the country finally paid off its last remaining bond obligations tied to the fiscal calamity there in 1999 through 2002.

While Argentina <a href="http://www.benzinga.com/markets/bonds/12/04/2508730/argentina-etf-feels-the-pain-on-cds-blowout">remains politically volatile</a> and Brazil's own socialist tendencies have weighed on the country's equities this year, it is fair to say many Latin American nations have put the darkest days of the debt crisis behind them.

As Latin America's economic growth has surged in recent years, not only have investors <a href="http://www.benzinga.com/markets/bonds/12/04/2508730/argentina-etf-feels-the-pain-on-cds-blowout">started to look beyond Brazilian and Mexican equities</a>, they have embraced the robust yields of Latin American sovereigns. With some countries in the region bound to see <a href="http://www.benzinga.com/markets/bonds/12/07/2783306/some-emerging-markets-primed-for-higher-credit-ratings">their credit ratings boosted in the coming years</a>, Latin American bonds do not sport nearly the risk they did a decade ago. These ETFs can help investors embrace LatAm debt. Only funds with sovereign debt exposure are featured here.

Market Vectors LatAm Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/bono#NYSE">BONO</a>)
BONO is the only ETF devoted exclusively to Latin American bonds, but that does not imply a great deal of risk. More than two-thirds of the ETF's 34 holdings are investment-grade issues and nearly two-thirds are dollar-denominated. 

For those feeling nervous about BONO, there are two very good reasons to consider this ETF. First, there is a 30-day SEC yield of 5.5 percent. Second, <a href="http://www.benzinga.com/markets/bonds/12/06/2702422/etfs-bill-gross-might-like-bono-hdv-pbj">PIMCO's Bill Gross</a> sounded a bullish tone on Brazilian and Mexican bonds earlier this year. Those two countries combine for about 52 percent of BONO's weight.

WisdomTree Emerging Markets Local Debt Fund (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>)
The WisdomTree Emerging Markets Local Debt Fund is the second-largest actively managed ETF on the market today with $1.2 billion in AUM. Nearly three-quarters of ELD 90 bond holdings are rated A, BBB, or AAA. 

Like BONO, ELD is heavy on Brazil and Mexico as Latin America's two largest economies combine for almost 21 percent of the fund's weight. Chile, Peru and Colombia combine for about 10 percent of ELD's total weight, making Latin America the largest region represented in ELD. With a 30-day SEC yield of 4 percent, ELD's effective duration is about 4.4 years. ELD has gained 5.8 percent year-to-date. 

Investors that want a passively managed equivalent to ELD, the Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: <a class="ticker" href="/stock/emlc#NYSE">EMLC</a>) also allocates about 31 percent of its weight to Latin America. Also consider the SPDR Barclays Capital Emerging Markets Local Bond (NYSE: <a class="ticker" href="/stock/ebnd#NYSE">EBND</a>).

PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>)
The PowerShares Emerging Markets Sovereign Debt Portfolio is one of the oldest and largest ETFs offering exposure to emerging markets debt. PCY, which is almost five-years-old, has over $2.1 billion in AUM. In an environment where investors have craved yield and the dollar has strengthened somewhat, PCY has flourished and has gained 10 percent year-to-date. That performance puts PCY well ahead of its primary rival, the iShares JPMorgan USD Emerging Markets Bond ETF (NYSE: <a class="ticker" href="/stock/emb#NYSE">EMB</a>).

Like, ELD and EMLC, PCY allocates about 31 percent of its weight to Latin America, but a Brazil/Mexico only ETF this is not. In fact, PCY does not Colombia and Peru, nor does the fund include Chilean bonds.

On the other hand, PCY does offer exposure to debt issues from El Salvador, Panama, Uruguay and Venezuela. PCY's 30-day SEC yield is 4.6 percent.

For more on Latin America and ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/08/2804595/etfs-for-latin-america-currency-interventions-ccx-gxg">here</a>.

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