HYEM Profile
The VanEck Emerging Markets High Yield Bond ETF is strategically positioned to deliver exposure to high-yield bonds from emerging market issuers. The fund generally invests at least 80% of its total assets in securities that constitute its benchmark index. This index focuses on U.S. dollar-denominated bonds issued by non-sovereign entities from emerging markets, specifically targeting those with credit ratings below investment grade.
The benchmark index comprises bonds issued in prominent domestic and Eurobond markets, reflecting a broad spectrum of high-yield opportunities across emerging economies. By concentrating on below-investment-grade securities, the fund seeks to capitalize on higher yield potential, though this also entails a higher risk profile.
The ETF is actively managed to align with the performance of its index, aiming to offer investors a diversified exposure to high-yield debt in emerging markets. This approach provides an opportunity to benefit from the growth potential of emerging economies, while managing risks through the selection of securities with varying credit quality.
Additionally, the fund’s portfolio may include bonds from various sectors and regions within the emerging markets, providing investors with a diversified exposure to different economic and geopolitical environments. The focus on U.S. dollar-denominated securities helps mitigate currency risk, making it an attractive option for investors seeking high yields in a global context.
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