I hold small amount of an emerging market bond fund (TEI) as a nice diversifying aspect of my portfolio. There's no reason not to own a small portion of emerging market debt right now. But as a trade I prefer to buy emerging markets during panics not when everything seems as rosey and perfect as it does right now. Yield spreads are at historic lows, emerging market economies like Russia and Brazil are booming do to the recent commodity price highs.
I do not like emerging market debt as an asset class right now. However, if one needs to add emerging market debt fund for a short term trade, there's no reason not to take WITY's recommendation.
My general rule is to look at the number of years it would take me to lose the fee differential as it compares to the discount. For example: The difference between ESD (1.81% expense, 14.56% discount) and TEI (1.21% expense, 9.51% discount). The discount difference is 5.05%, expense different 0.6%, 0.6/5.05 = 8.4 years. If my expected holding period is less than 8.4 years and I believe there is no difference between managers debt picking ability, then it makes sense to hold the higher expense fund.
Emerging Market Closed-End Fund Comparisons
(information compiled from Closed-End Fund Association: www.cefa.org)
Disclosure: I own TEI for my IRA. I have owned and sold MSD in the last two years. I own no other fund mentioned above.