Govt – International

Why invest in Govt-International

Buying bonds issued by Governments other than US is a diversification tool. . There can be higher interest rate depending on the fundamentals of the country /region . All the risks associated with investing in bonds exist, in addition investing in international Govt bonds can be subject to currency risk, political risk and repayment risk collectively known as sovereign risk. Default Risk, is a major risk for emerging markets. Currency fluctuations can have a wide impact on loss/gain when converting back in U.S. dollar..

Key indicators to consider before investing 

  • Interest rate – Investing Country
  • Credit Rating
  • GDP
  • Fiscal and Monetary Deficit
  • Exchange Rate Movements

Top 6 ETF’s by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM* Year of Inception Expense Ratio
iShares JP Morgan USD Emerging Market Bond  EMB 12/17/2007  0.40%
PowerShares Emerging Market Sovereign Debt Portfolio   PCY  10/11/2007 0.50%
VanEck Vectors J.P. Morgan EM Local Currency Bond  EMLC  07/22/2010  0.47%
Vanguard Emerging Market Government Bond VWOB 06/06/2013 0.34%
iShares S&P/Citigroup International Treasury Bond IGOV  01/29/2009 0.35%
SPDR Citi International Government Inflation Protected Bond  WIP  03/13/2008 0.50%

 

 

 

 

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