VanEck JP Morgan EM Local Currency Bond ETF

EMLC

Börsenwert 4,95 Mrd. $

The long-run return forecast for the Global Market Index continued to edge higher in September. Fueled by a decline in financial markets last month, GMI's projected return increased for a fifth straight month.

Africa's long-term opportunity is broadening, supported by demographics, urbanization, agriculture, energy, and critical minerals. Global competition is creating new opportunities, as countries seek to capture more value from their resources and attract investment.

Emerging market local currency debt has outperformed some other types of bond funds recently but now faces mounting headwinds. Favorable currency tailwinds are fading as the U.S. dollar has started to strengthen. Fed rate hikes are likely to support a stronger dollar. VanEck JP Morgan EM Local Currency Bond ETF's intermediate duration exposes it to some downside price risk as rates rise.

The total return forecast for the Global Market Index continued to tick higher in August for the long-run outlook. The latest GMI return forecast (an annualized 8.1% performance) is modestly above last month's estimate but still far short of the benchmark's trailing return for the past ten years, although the gap has been narrowing lately.

Diversifying into foreign bond markets has been a win for US investors this year, based on a review of a set of ETFs through Aug. 27's close. The Vanguard Total Bond Market ETF, a proxy for government and investment‑grade corporates, is essentially flat, posting a fractional 0.2% rise.

Many investors need more than traditional bonds can deliver. VanEck provides access to a range of higher-yielding asset classes built for today's income environment.

Market gauges of inflation-adjusted borrowing costs have shot to their highest in more than a decade across major economies as AI companies and governments ramp up bond sales, raising ​risks for stock markets and the world economy.

South Korea and Taiwan are grabbing the majority of financial news headlines when it comes to international exposure, but a peek inside Latin America reveals potential opportunities. Brazil, in particular, could be offering investors ample value in both equities and bonds beyond those aforementioned countries already benefiting from the artificial intelligence (AI) buildout.

With the Iran war escalating, the conflict is again getting harder to ignore, which strengthens the case for maintaining a globally diversified portfolio. Energy prices are rising again, and the specter of elevated inflation and potential Federal Reserve rate hikes is once more a risk factor on the march.

The outlook for long-term total return for the Global Market Index (GMI) edged up again in June, touching the highest level in recent history. Despite the recent rise, the expected performance remains well below GMI's realized return over the trailing ten-year window.