Grab Exposure to the Booming Chinese Tech Sector with WisdomTree February 16, 2021
Despite the controversies in Chinese tech, the sector remains one of the hottest factors in the emerging markets equation.
Advisors can access it in broad-based fashion via WisdomTree’s Emerging Markets Multi-Factor Portfolio.
“This model portfolio is designed for investors with a long-term horizon looking for exposure to a broad universe of Emerging Market equities primarily using factor focused ETFs. The selected ETFs provide certain factor tilts that have the potential to generate excess return relative to comparable cap-weighted benchmarks over longer-term holding periods. The strategies may use both WisdomTree and non-WisdomTree ETF,” according to WisdomTree.
“The reflation trade continues to push equity markets across all industries and multi-caps … and this rally could continue in the near-term,” Tony Bedikian, head of global markets at Citizens Bank, told Reuters. “It has been a bit of parabolic run up here so we may be due for a correction but it is hard to see a catalyst for that at the moment just because there is so much stimulus, both monetary and fiscal and the anticipation of more fiscal measures.”
House Democrats are prepping legislation for President Joe Biden’s $1.9 trillion coronavirus relief proposal this week, the Wall Street Journal reports.
With the Right Dosage, EM Junk Bonds Like HYEM Can Work Wonders February 16, 2021
The combination of emerging markets and junk bonds may appear to be too risky for many income investors, but with the right methodology investors can dial back some of that risk while grabbing access to higher levels of income.
Enter the
VanEck Vectors EM High Yield Bond ETF (NYSEArca: HYEM). HYEM seeks to replicate the ICE BofAML Diversified High Yield US Emerging Markets Corporate Plus Index, which is comprised of U.S. dollar denominated bonds issued by non-sovereign emerging market issuers that have a below investment grade rating and that are issued in the major domestic and Eurobond markets.
February 16, 2021
A passive index may not give fixed income investors full exposure to the broad spectrum of bonds, including those in emerging markets. Thankfully, there’s a solution for that problem in the actively managed
EMBD aims to provide investors with strategic exposure to the growing universe of emerging market debt. With a total market size of $26 trillion, emerging market debt represents more than 20% of the global bond market and is a common fixture in income-oriented portfolios.
The fund primarily invests in emerging market debt securities denominated in U.S. dollars, however, the fund may also invest in those denominated in applicable local foreign currencies. Securities may include fixed-rate and floating-rate debt instruments issued by sovereign, quasi-sovereign, and corporate entities from emerging market countries.