Global X ETFs has offered an actively managed strategy called the Emerging Market Bond (ETF). EMBD aims to provide investors with strategic exposure to the often difficult to understand emerging market debt. Emerging market debt is often used as the ‘risky’ component of a larger fund, the higher your risk appetite the larger your fund’s allocation of EM debt and generally, the higher your risk appetite the higher the reward. Luckily for investors, the fund is advised by Mirae Asset management known for their innovative Emerging Market ETF’s. The EMBD’s country allocation will be based on factors including, but not limited to, economic indicators and conditions. The combination of Global X’s client-orientated approach and Mirae’s strong connections and experience in the emerging market fixed-income space creates a promising investment vehicle and also suggests a positive future outlook on emerging markets. The JP Morgan Emerging markets bond index (EMBI) is a good indicator for EM Debt and is up 67% since its inception in 2010. I know, we wish we invested too.

Emerging market debt is considered risky given the current economic conditions, but in the long-term is this a good investment at this time? Discuss…

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