Hunger for yield sends investors afar

Historically low interest rates in the U.S. may be set to rise, but that isn’t the case in many other developed markets, including Germany and Japan, where intermediate rates are still negative.

Low and negative rates inherently sap the “income” component of fixed income, which has ETF investors flocking to friendlier shores.

A hot destination: emerging-markets bonds.

The iShares J.P. Morgan USD Emerging Markets Bond EMB, -0.46% ETF holds dollar-denominated debt of more than 30 countries, led by Turkey, the Philippines, Russia, Argentina and Colombia. The fund has drawn in $4.81 billion over the past year through August, representing 50% of total current assets, according to XTF Inc.

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