14 April 2020
Emerging markets have been under pressure as the COVID-19 crisis has unfolded. The reasons vary by country but there have been some substantial losers, such as South Africa. However, with some moves being driven by FX and others by the weakness of bond returns, it has been a particularly hard channel to navigate.
This means index construction has been important and the well diversified Bloomberg Barclays EM local currency index has managed to weather the storm better than certain others. Of note, the index’s growing exposure to China, which has been one of the top performers of the EM world during the crisis, should mean it continues to provide a degree of stability.
To learn more about the recent performance of the emerging market debt space, including an in-depth look at the drivers and the countries most impacted, please read our recent note, Weathering the Storm in Emerging Markets.
How to play this theme
Investors can gain access to emerging market debt through SPDR ETFs, including hedged exposure. To read more about these ETFs, including their full performance histories, please follow the link below:
SPDR Bloomberg Barclays Emerging Markets Local Bond UCITS ETF