Neuberger Emerging Markets Debt Hard Currency ETF

NEMD

Market cap $136M

Many fixed income investors know a little something about emerging markets debt. After all, it's a hard asset class to ignore as it accounts for more than a quarter of the global fixed income market.

In the market, leadership can fluctuate from year-to-year. However, it's possible for winning segments to repeat the feat for two (or more) consecutive years.

President Trump's second term, particularly regarding economic policy, was supposed to focus on “America first.” But while domestic financial markets have performed admirably since he returned to the White House, international markets have been the real stars.

Regional diversification is often discussed with stocks. That means investors should have some exposure to ex-U.S. equities to augment domestic-heavy portfolios.

There are plenty of asset classes that are conducive to active management. But emerging markets debt is arguably near the top of the list.

Amid expectations that the Federal Reserve is only just starting its monetary easing program, advisors and investors are rightfully focusing on Treasuries and other forms of domestic debt. However, market participants should be careful of getting too carried away with U.S. bonds.