ETF Research and Analysis

by Timothy Strauts
Suitability
WisdomTree Emerging Markets Local Debt ELD is suitable for use as a satellite holding within a diversified fixed-income allocation. The emerging-markets debt space has become increasingly popular in recent years. Excellent   Read more 

Bull Case

Local-currency emerging-markets bonds provide an opportunity to benefit from relative currency gains, which should materialize over the long term thanks to emerging markets' fiscal stability and higher economic growth.
With relatively low correlations to other major asset classes, emerging-markets debt offers valuable diversification benefits.
This fund provides convenient, low-cost exposure to an actively managed portfolio of local-currency emerging-markets government bonds. Read more 

Bear Case

Although it should bolster long-term returns and improve diversification, the fund's exposure to local currencies also increases volatility.
A surge in demand has driven prices higher and lowered yields. Investors should make sure to be adequately compensated for the risks associated with emerging markets.
While credit quality has been improving over the past several years, emerging markets still court unique risks related to lower transparency, weaker governance, and less liquidity. Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Lost in Translation: Emerging-Markets Dividend ETFs 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.