- The conventional thinking not long ago was that investing in developing markets needed the nimbleness of active managers able to respond to sudden shifts in political risks. The numbers don't back that up: Over the last five years, the iShares JPMorgan USD Emerging Market Bond ETF (NYSEARCA:EMB) has outperformed active peers by an average 74 basis points, according to Morningstar.
- Investors, in turn, are flocking to it. The EMB became the largest emerging-market debt fund year ago, and has doubled assets to more than $10B in the last 12 months.
- In ETFs, the large tend to become larger as investors prefer the better liquidity, and greater assets allow lower fees - at 45 basis points, EMB currently has the second-lowest fee among all emerging debt funds.
- ETFs: EMB, PCY, TEI, EDF, ELD, EDD, EMLC, VWOB, GHI, EDI, EMD, MSD, SBW, LEMB, EMAG, EBND, EMSH, FEMB, EMIH, EMBH, EMTL, IGEM