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Diversify Beyond the U.S. with EM Local Currency Bonds

Diversify Beyond the U.S. with EM Local Currency Bonds

Diversify Beyond the U.S. with EM Local Currency Bonds

Marketing Communication

Diversify Beyond the U.S. with EM Local Currency Bonds

The case for diversification away from U.S. interest rate and dollar risk continues to strengthen. We believe emerging markets (EM) local currency bonds can offer a compelling way for investors to mitigate these risks within a fixed income portfolio, while also earning a potentially attractive yield.

Key risks:

  • Currency risk – EM currencies may lose value against the investor’s base currency, eroding returns.
  • Sovereign credit risk – EM governments may default or restructure, causing bond prices to fall.
  • Liquidity risk – EM local-currency bonds can be harder to trade quickly or at quoted prices, especially in stressed markets.
  • Political and regulatory risk – policy changes or capital-controls in EM countries can adversely affect bond values and repatriation of proceeds.

Investors should bear in mind that past performance is not indicative of future results. Investment in the VanEck J.P. Morgan EM Local Currency Bond UCITS ETF entails currency, sovereign credit, liquidity and political risks, and investors may lose some or all of their capital.

Please refer to the KID and the Prospectus for other important information before investing, including all risks factors.

Register now to watch the recorded webinar.

Webinar details

June 18, 2025

20:00 CEST

Duration 60 MIN

IMPORTANT INFORMATION

This is marketing communication. Please refer to the prospectus of the UCITS and to the KID/KIID before making any final investment decisions. These documents are available in English and the KIDs/KIIDs in local languages and can be obtained free of charge at www.vaneck.com, from VanEck Asset Management B.V. (the “Management Company”) or, where applicable, from the relevant appointed facility agent for your country.

For investors in Switzerland: VanEck Switzerland AG, with registered office in Genferstrasse 21, 8002 Zurich, Switzerland, has been appointed as distributor of VanEck´s products in Switzerland by the Management Company. A copy of the latest prospectus, the Articles, the Key Information Document, the annual report and semi-annual report can be found on our website www.vaneck.com or can be obtained free of charge from the representative in Switzerland: Zeidler Regulatory Services (Switzerland) AG, Neustadtgasse 1a, 8400 Winterthur, Switzerland. Swiss paying agent: Helvetische Bank AG, Seefeldstrasse 215, CH-8008 Zürich.

For investors in the UK: This is a marketing communication targeted to FCA regulated financial intermediaries. Retail clients should not rely on any of the information provided and should seek assistance from a financial intermediary for all investment guidance and advice. VanEck Securities UK Limited (FRN: 1002854) is an Appointed Representative of Sturgeon Ventures LLP (FRN: 452811), which is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, to distribute VanEck´s products to FCA regulated firms such as financial intermediaries and Wealth Managers.

This information originates from VanEck (Europe) GmbH, which is authorized as an EEA investment firm under MiFID under the Markets in Financial Instruments Directive (“MiFiD). VanEck (Europe) GmbH has its registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, and has been appointed as distributor of VanEck products in Europe by the Management Company. The Management Company is incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM).

This material is only intended for general and preliminary information and shall not be construed as investment, legal or tax advice. VanEck (Europe) GmbH and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed.

VanEck J.P. Morgan EM Local Currency Bond UCITS ETF (the "ETF") is a sub-fund of VanEck UCITS ETFs plc, an open-ended variable capital umbrella investment company with limited liability between sub-funds. The Management Company transferred the investment management for the ETF to Van Eck Associates Corporation, an investment company regulated by the U.S. Securities and Exchange Commission (SEC). The ETF is registered with the Central Bank of Ireland, passively managed and tracks a bond index. For details on the regulated markets where the ETF is listed, please refer to the Trading Information section on the ETF page at www.vaneck.com. Investing in the ETF should be interpreted as acquiring shares of the ETF and not the underlying assets.

Investing is subject to risk, including the possible loss of principal. Investors must buy and sell units of the UCITS on the secondary market via an intermediary (e.g. a broker) and cannot usually be sold directly back to the UCITS. Brokerage fees may incur. The buying price may exceed, or the selling price may be lower than the current net asset value. The Management Company may terminate the marketing of the UCITS in one or more jurisdictions. The summary of the investor rights is available in English at: complaints-procedure.pdf (vaneck.com). For any unfamiliar technical terms, please refer to ETF Glossary | VanEck.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.

© VanEck (Europe) GmbH ©VanEck Switzerland AG © VanEck Securities UK Limited