BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF targets U.S. dollar-denominated EM sovereign and quasi-sovereign bonds with capped duration. XEMD boasts a strong recent performance: +13.6% in 2025 YTD and a portfolio split roughly 50/50 between investment-grade and sub-investment-grade debt. Current EM credit spreads are historically tight, limiting immediate upside; XEMD is rated 'Hold' pending more attractive entry points.
Recent data is highlighting why investors should consider adding more exposure to emerging markets. S&P Global research found that at the end of April, the Emerging Market PMI Output Index was sitting at 53.6.