Performance During the fourth quarter of 2020, the SPDR DoubleLine Emerging Markets Fixed Income ETF (EMTL) underperformed the JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified Index. The underperformance was driven by the portfolio’s overweight allocation to investment-grade corporate credit despite its overweight to Latin American credit.
Over the quarter, high-yield corporate credit and Latin American credits were strong performers as the dollar softened, generally leading to higher commodity prices. The portfolio maintained an underweight allocation to Asian credit relative to the benchmark, while having an overweight exposure to Latin American credit. All main regions contributed positively to the portfolio’s performance. The spreads of the JP Morgan CEMBI Broad Diversified Index tightened by 100 basis points (bps) over the quarter, to finish December at 270 bps. The duration of the portfolio stood at 3.3 years as of the end of December 2020 versus the benchmark’s duration of 4.7 years as of the end of December 2020.1