HYEM has a 0.40% expense ratio, 405 bonds, strong exposure to China, and BBB-CCC rated debt with a duration under 5 years. The spread between emerging market high-yield and investment-grade bond yields has narrowed to concerning lows. The threat of tariffs could lead to rising yields, which would push prices down.
Risk-tolerant investors searching for income and the potential for added upside with bonds have long turned to high-yield corporate debt and related ETFs. However, that focus has largely been limited to domestic offerings.
High-yield and high dividend investments through ETFs are preferred for preserving value. The increasing recession risks in the U.S. could favor a DCA strategy on emerging market high-yield bonds, unlike in the past. Fed rate cuts and dollar weakness could increase the demand for emerging market high yield bonds, and some data is already supporting this thesis.
![]() HYEM In 2 weeks Estimated | Monthly | $0.1 Per Share |
![]() HYEM 2 weeks ago Paid | Monthly | $0.1 Per Share |
![]() HYEM 1 month ago Paid | Monthly | $0.11 Per Share |
![]() HYEM 2 months ago Paid | Monthly | $0.11 Per Share |
![]() HYEM 3 months ago Paid | Monthly | $0.12 Per Share |
![]() HYEM 4 months ago Paid | Monthly | $0.1 Per Share |
![]() HYEM In 2 weeks Estimated | Monthly | $0.1 Per Share |
![]() HYEM 2 weeks ago Paid | Monthly | $0.1 Per Share |
![]() HYEM 1 month ago Paid | Monthly | $0.11 Per Share |
![]() HYEM 2 months ago Paid | Monthly | $0.11 Per Share |
![]() HYEM 3 months ago Paid | Monthly | $0.12 Per Share |
![]() HYEM 4 months ago Paid | Monthly | $0.1 Per Share |
ARCA Exchange | US Country |
The fund is specifically designed for investors seeking exposure to emerging markets through securities that are potentially higher yield but below investment grade. By focusing on U.S. dollar-denominated bonds issued by non-sovereign entities, the fund leverages the growth potential of emerging markets while aiming to mitigate some of the risks associated with foreign currency fluctuations. The strategic requirement to invest at least 80% of its assets in bonds that are part of its benchmark index ensures that the fund's performance closely aligns with the broader market trends of emerging market corporate debt. This approach is particularly suited for investors who are looking to diversify their portfolio with investments that offer a higher risk-return profile compared to investment-grade bonds.
The fund primarily offers investors access to a carefully curated selection of corporate bonds sourced from emerging markets. These bonds, being U.S. dollar-denominated, provide a safeguard against currency risk while exposing investors to the economic growth potential inherent in these regions. The focus on below investment grade bonds allows for potentially higher yields, albeit with an increased level of risk.
Distinct from sovereign bonds, the fund's investment in non-sovereign bonds targets entities that are not directly tied to government finances. This includes corporations and potentially state-owned enterprises that operate independently. This strategy diversifies the sources of return, tapping into different drivers of economic performance within emerging markets beyond governmental fiscal and monetary policy.
By investing in U.S. dollar-denominated bonds, the fund aims to mitigate the impact of local currency volatility on the investment returns. This strategy is particularly beneficial for investors who prefer to manage the currency risk inherent in international investments, providing a more stable and predictable investment environment.