This could be the most dangerous ETF in the world right now
From ETF Trends:
Some combinations – think peanut butter and jelly, or autumn and football –
are tried and true. Others are just trying. At least, that is the current state of affairs for emerging markets ETFs that hold high-yield bonds.
Individually, emerging markets debt and high-yield have hit a rough patch. On Tuesday, the PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) hit a new 52-week low. In the past month, the SPDR Barclays High Yield Bond ETF (JNK) is down almost 4%.
The iShares Emerging Markets High Yield Bond Fund (NYSEArca: EMHY) is enduring its own woes as investors are scurrying out of both emerging markets and junk debt amid lingering fears about rising rates in the U.S…
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