 The
iShares J.P. Morgan EM Corporate Bond ETF (CEMB) is an exchange-traded
fund that provides exposure to investment-grade corporate bonds issued
by companies in emerging markets. CEMB tracks the J.P. Morgan CEMBI
Broad Diversified Index and holds more than 900 securities, primarily
in the financial, energy, and materials sectors.
The fund has
an expense ratio of 0.50% and is designed to offer investors a higher
yield compared to developed market bonds. The underlying index is
market-weighted and rebalanced monthly, which means the fund's
holdings are adjusted to reflect changes in the index.
As with
all bond funds, CEMB is subject to interest rate risk and credit risk.
A rise in interest rates can lead to a decrease in the value of the
bonds held in the fund, while credit risk arises from the possibility
of default by one or more of the issuers in the portfolio.
Investors looking for exposure to emerging market corporate bonds may
find CEMB to be a useful addition to their portfolio, particularly as
it offers access to a diverse range of companies in a single
investment. However, it is important to consider the risks involved
before investing and to ensure that the investment aligns with one's
overall financial goals and risk tolerance.
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