Bonds and the related ETFs did what they were supposed to do last year. They delivered income, finally reduced correlations to stocks, and added portfolio diversification.
LEMB: Bond ETF Disqualified As An Income Fund
Emerging market sovereign debt is not the best way to access emerging market growth this decade. 2023 saw positive performance for emerging market debt, but weaker 2024 performance and concerns about currency, growth, and inflation make 2025 less attractive. Geopolitical and economic risks, slower growth, and policy rate uncertainty contribute to a hazy outlook for sovereign debt in 2025.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| RG Rafael Guijarro City National Bank Of Florida /MSD | 5,089 | $183,657.88 | $216,409.72 | $32,751.84 | 17.83% |
| JJ James Jones Sterling Investment Advisors LLC /ADV | 282,195 | $11.36M | $11.98M | $624,630.81 | 5.5% |
| YA Yinka Akinsola Blue Trust Inc. | 98 | $3,998.4 | $4,159.61 | $161.21 | 4.03% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 882 | $33,921.72 | $37,471.77 | $3,550.05 | 10.47% |
Bill McVay Red Tortoise LLC | 521 | $18,180.3 | $22,064.35 | $3,884.05 | 21.36% |
| ARCA Exchange | US Country |
The fund is designed to offer investors exposure to the sovereign bond markets of emerging market countries through investments that closely follow the performance of a specific underlying index. By allocating at least 80% of its assets in the component securities of this index, and committing at least 90% of its assets to fixed income securities included within the index, the fund aims to accurately track the index's performance. Managed by BFA, the fund focuses on local currency-denominated bonds, offering a unique approach to investment in emerging markets. Despite being non-diversified, which may suggest a higher level of risk compared to diversified funds, the fund's strategic investment in sovereign bond markets of emerging countries seeks to capitalize on the potential growth and returns associated with these markets.
The fund invests a minimum of 80% of its assets directly into the securities that form the underlying index. This strategy aims to ensure that the fund's performance closely mirrors that of the index, providing investors with a transparent and focused investment approach targeting the sovereign bond markets of emerging market countries.
Allocating at least 90% of its assets in fixed income securities of the types included in the underlying index, the fund emphasizes its commitment to tracking the index's performance. Managed by BFA, this strategy involves investing in local currency-denominated fixed income securities from emerging markets, aiming to leverage the growth potential and returns associated with these regions while maintaining an investment profile that seeks to align closely with the underlying index.