Average Daily Volume
7.11M
Fund Overview
The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) provides investors with exposure to U.S. dollar-denominated sovereign bonds issued by emerging market governments. EMB tracks the J.P. Morgan EMBI Global Core Index, which includes fixed-rate sovereign bonds from emerging market countries that meet specific liquidity and structural criteria. The fund offers diversified exposure to emerging market debt, which can provide higher yields compared to developed market bonds, though with increased risk. EMB is one of the largest and most liquid ETFs in the emerging market bond category, making it a popular choice for investors seeking income and diversification.
- Asset Class
-
Bond
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 6.24 %
- Currency Hedged
-
No
- Portfolio Turnover
-
12 %
- Dividend Date
-
Why Invest in the EMB ETF?
Potential Benefits
- Provides exposure to higher-yielding sovereign bonds from emerging markets, potentially enhancing portfolio income.
- Diversifies fixed-income holdings beyond developed market government and corporate bonds.
- Liquidity and transparency of an ETF structure, making it easier to trade than individual bonds.
- Tracks a well-established index (J.P. Morgan EMBI Global Core Index) with clear eligibility criteria.
- Historically, emerging market bonds have shown low correlation with developed market fixed-income assets.
Potential Risks
- Emerging market bonds carry higher credit risk due to economic and political instability in some countries.
- Sensitive to U.S. interest rate movements, which can impact bond prices negatively.
- Currency risk (though EMB holds USD-denominated bonds, local economic conditions can still affect repayment ability).
- Liquidity risk during market stress, as emerging market bonds may be harder to sell.
- Defaults or restructuring events in constituent countries could negatively impact performance.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.3%
|
+1.6%
|
-3.5%
|
+2.5%
|
+1.1%
|
+0.4%
|
-1.4%
|
+0.6%
|
-3.7%
|
+0.6%
|
-
|
-
|
| 2025 |
+1.7%
|
+2.1%
|
-1.1%
|
-0.3%
|
+1.2%
|
+2.7%
|
+0.7%
|
+1.8%
|
+1.6%
|
+2.0%
|
+0.5%
|
+0.3%
|
| 2024 |
-1.2%
|
+0.8%
|
+2.0%
|
-2.4%
|
+2.6%
|
-0.2%
|
+2.7%
|
+2.3%
|
+2.0%
|
-2.4%
|
+1.8%
|
-2.2%
|
| 2023 |
+3.9%
|
-2.7%
|
+1.7%
|
+0.3%
|
-1.2%
|
+2.5%
|
+1.7%
|
-1.8%
|
-3.3%
|
-1.2%
|
+6.2%
|
+4.5%
|
| 2022 |
-3.4%
|
-5.5%
|
-1.1%
|
-6.7%
|
+0.8%
|
-6.2%
|
+3.6%
|
-2.7%
|
-6.6%
|
-0.2%
|
+10.1%
|
-1.4%
|
| 2021 |
-1.8%
|
-3.0%
|
-0.7%
|
+2.4%
|
+1.0%
|
+0.9%
|
+0.6%
|
+0.9%
|
-2.6%
|
+0.2%
|
-1.9%
|
+2.2%
|
| 2020 |
+1.2%
|
-1.3%
|
-15.0%
|
+4.4%
|
+6.3%
|
+3.0%
|
+3.9%
|
+0.7%
|
-2.1%
|
-0.5%
|
+4.2%
|
+2.2%
|
| 2019 |
+4.8%
|
+0.4%
|
+1.5%
|
+0.2%
|
+0.5%
|
+3.5%
|
+0.7%
|
+1.6%
|
-1.1%
|
+0.6%
|
-1.0%
|
+2.9%
|
| 2018 |
-0.6%
|
-2.2%
|
+0.6%
|
-2.1%
|
-0.8%
|
-1.5%
|
+2.6%
|
-2.3%
|
+2.0%
|
-2.5%
|
-0.5%
|
+1.9%
|
| 2017 |
+1.7%
|
+1.7%
|
+0.5%
|
+1.7%
|
+0.8%
|
-0.7%
|
+1.2%
|
+2.0%
|
-0.2%
|
+0.2%
|
-0.3%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: EMB vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
EMB tracks the J.P. Morgan EMBI Global Core Index, which includes U.S. dollar-denominated sovereign bonds from emerging market countries. The index uses a rules-based methodology that considers country eligibility, bond structure (fixed-rate, bullet maturity), and liquidity requirements. EMB generally holds a representative sample of the index's bonds to replicate its performance. The fund is market-cap weighted, meaning larger issuers have greater representation. The index is rebalanced monthly to reflect changes in the eligible universe.
Frequently Asked Questions
What types of bonds does EMB hold?
EMB holds U.S. dollar-denominated sovereign bonds issued by emerging market governments, primarily fixed-rate bonds with bullet maturities.
How often does EMB pay dividends?
EMB pays dividends monthly, reflecting the coupon payments from its underlying bond holdings.
Is EMB a good hedge against inflation?
While not specifically designed as an inflation hedge, emerging market bonds may offer some inflation protection as their yields often incorporate inflation expectations, though this varies by country.
What is EMB's expense ratio?
EMB has an expense ratio of 0.39%, which is competitive for emerging market bond ETFs.
How does EMB handle bond defaults?
The index methodology excludes defaulted bonds, and EMB would typically sell any bonds that default to maintain index tracking.
Industry Overview
The iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) provides exposure to the growing asset class of emerging market sovereign debt. Emerging market bonds have become an increasingly important part of global fixed-income portfolios, offering higher yields than developed market government bonds, though with greater risk. EMB focuses on USD-denominated bonds, which reduces direct currency risk for U.S. investors but still reflects the economic conditions of the issuing countries. The emerging market debt universe has expanded significantly in recent decades as more countries access international capital markets, creating opportunities for diversified fixed-income exposure.
Alternative Comparison
Compared to similar funds like PCY (Invesco Emerging Markets Sovereign Debt ETF) and VWOB (Vanguard Emerging Markets Government Bond ETF), EMB offers broader exposure across more emerging markets and has greater liquidity due to its larger asset base. Unlike some actively managed emerging market bond funds, EMB provides transparent, rules-based exposure at a lower cost. However, investors seeking local currency exposure might consider funds like EMLC (emerging market local currency bonds) instead.
Issuer Overview
EMB is issued by iShares, BlackRock's ETF division, which is the world's largest ETF provider with trillions in assets under management. iShares offers a comprehensive range of fixed-income ETFs, including several targeting emerging market debt. The firm is known for its index-tracking expertise and robust ETF infrastructure.
Conclusion
EMB provides efficient access to the potentially higher-yielding but riskier universe of emerging market sovereign bonds. As part of a diversified fixed-income allocation, EMB can enhance yield potential while providing exposure to different economic cycles than developed markets. Investors should carefully consider their risk tolerance and investment horizon before allocating to this asset class.
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