VanEck Vectors J.P. Morgan EM Local Currency Bond ETF (EMLC)

Appreciating US dollar versus emerging markets will be a theme for the next 5-10 years. High yield but higher risk. You could get countries that have to issue debt in USD, which puts currency risk on them. The others will issue debt in local currency and there is currency risk for you. There has been a move to strengthen USD.

A basket of emerging market bonds. If the US dollar strengthens, it will get hurt. It is emerging market sovereign bonds issued in local currency. If in the next couple years, the Fed prints money and monetize debt, the emerging market currencies will strengthen relative to the dollar. The bonds yield north of 6%. There will be some volatility going into the election.

A basket of emerging market sovereign debt. You get countries like China, Turkey and Argentina. High quality with weak fiscal situations and you get exposure to foreign currency. Governments are poised to be printing their own money and so they are unlikely to default in their own currency. 6% yield.

It is a basket of emerging market countries including some challenged ones. We are going through a shock period now. They are government bonds trading in the local currencies so you have interest rate risk as well as currency risk. He has been adding to them over the last year and a half. You have to wait until the strength gets back into the emerging currencies. You get paid a good yield and the volatility is way less than emerging market volatility.

Emerging markets issue bonds in local currencies or in US dollars. This one is local currency bonds. Since the FED has stopped increasing interest rates, then currencies should strengthen rather than weaken. You probably have 10% downside with a yield of 6.25% plus 2-3% on the currency side. He likes this in the fixed income world. It is his favourite play and is a big position in all his portfolios.