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Emerging Markets Bonds

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EMLC
VanEck Vectors J.P. Morgan EM Local Currency Bond UCITS ETF

Index Description

The J.P. Morgan Government Bond Index-Emerging Markets Global Core Index (GBIEMCOR) is a comprehensive Emerging Markets debt benchmark that tracks local currency bonds issued by Emerging Market governments. 

Index Key Points

Underlying Index
The J.P. Morgan GBI-EMG Core Index (GBIEMCOR)


Index components
The index comprises local currency bonds issued by emerging market governments.


Components eligible for inclusion


  • Country Criteria
    • Gross Net Income (GNI) per capita must be below the Index Income Ceiling (IIC) for three consecutive years. J.P. Morgan defines the IIC as the GNI per capita level that is adjusted every year by the growth rate of the GNI per capita provided by the World Bank.
    • Excludes countries where local market investing is subject to capital controls.
  • Liquidity
    • Bonds must trade with enough frequency as determined by the index provider to help prevent stale price Quotes.
    • Two-way trading must exist, bonds must trade regularly at acceptable bid/ask spreads, and be readily redeemable for cash as determined by the index provider.
    • In addition, bonds must have a minimum face amount outstanding of $1 billion (for locally issued bonds) or $500 million (for globally issued bonds).
  • Weighting Methodology
    • Maximum country weight of 10% (cap) and minimum country weight of 1% to 3% (floor) based on country’s eligible debt outstanding amount.
  • Monthly Rebalance
    • Rebalance day occurs on the last weekday of each month.
    • Bonds must have more than 13 months remaining to maturity on the rebalance day.

Index Provider
J.P. Morgan


Click here for more information about the index composition
Click here for more information about the index methodology

Index Information

  • Index Provider

    J.P. Morgan
  • Index Type

    Total Return
  • Currency

    USD
  • Inception Date

    22 Jul 2010
  • Rebalance Frequency

    Monthly
  • Bloomberg Ticker

    GBIEMCOR

Index Fundamentals4
as of 24 Sep 2020

  • Yield to Worst

    4.54%
  • Yield to Maturity

    4.54%
  • Effective Duration (yrs)

    5.18
  • Years to Maturity

    7.26
  • Modified Duration (yrs)

    5.34
  • Coupon

    5.82%
 4See Important Disclosure for definitions.

Index Top 10 Constituents (%) as of 31 Aug 2020

Total Constituents: 238
Constituent Name
Coupon
Maturity Weighting (%)
Nota Do Tesouro Nacional
10.000
01 Jan 2023
1.68
Republic Of South Africa
10.500
21 Dec 2026
1.44
Letra Tesouro Nacional
0.000
01 Jul 2023
1.43
Nota Do Tesouro Nacional
10.000
01 Jan 2025
1.40
Letra Tesouro Nacional
0.000
01 Jan 2024
1.29
Republic Of Philippines
6.250
14 Jan 2036
1.25
Nota Do Tesouro Nacional
10.000
01 Jan 2027
1.04
Dominican Republic
9.750
05 Jun 2026
1.02
Mex Bonos Desarr Fix Rt
8.500
31 May 2029
1.01
Mex Bonos Desarr Fix Rt
7.500
03 Jun 2027
0.96
Top 10 Total (%) 12.52
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index Country Weightings (%) as of 31 Aug 2020

  • Country

    Weightings (%)
  • Indonesia

    10.0
  • Mexico

    10.0
  • Brazil

    9.4
  • Thailand

    8.0
  • Poland

    7.3
  • South Africa

    7.1
  • Russia

    6.9
  • China

    6.0
  • Malaysia

    5.8
  • Colombia

    4.7
  • Czech

    3.9
  • Hungary

    3.5
  • Peru

    3.1
  • Chile

    3.0
  • Romania

    3.0
  • Turkey

    3.0
  • Uruguay

    1.8
  • Philippines

    1.8
  • Dominican Repb.

    1.8

Index Sector Weightings (%) as of 31 Aug 2020

  • Sector

    Weightings (%)
  • Government

    100.0

Index Credit Quality (%) as of 31 Aug 2020

Composite % of Net Assets
Investment Grade AA 0.61
A 8.89
BBB 33.60
Non-Investment Grade BB 18.21
Total Investment Grade -- 43.10
Total Non-Investment Grade -- 18.21
Not Rated -- 38.69

Source: Bloomberg. Rating is a proprietary composite of various rating agencies. A bond must be rated by two or more rating agencies to receive a composite rating; otherwise it is classified as Not Rated.

Maturity (%) as of 31 Aug 2020

 Average Maturity: 7.32 Years

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