BlackRock’s New ETF Goes Long on Emerging Market Bonds. Not Everyone Agrees

BlackRock’s New ETF Goes Long on Emerging Market Bonds. Not Everyone Agrees

Weak may be the new strong. Emerging market bonds are expected to outperform again this year, Michel Aubenas, BlackRock’s chief of EM debt, said in a recent interview. A weaker US dollar is expected to contribute, improving the conditions for investing in emerging market bonds. In April, BlackRock launched a new active fund, the iShares $ EM Bond Active Ucits ETF (ISOV) to capture some of that investor interest. However, yield spreads, or the di…