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

Market Updates*

  • Local currency emerging markets sovereign bonds have historically exhibited negative correlation to U.S. treasuries, providing a potential offset to the impact of rising U.S. interest rates.1
  • EMLC may be an attractive way to earn relatively high carry2and potentially benefit from U.S. dollar weakness
  • Local currency emerging markets bonds may provide a higher quality alternative to USD emerging markets sovereigns while providing attractive yield, as the average credit quality of the local emerging markets benchmark is investment grade while the hard currency benchmark is on average high yield.3

Learn More | What Do Inflation and Growth Mean for EMFX?

1Source: Morningstar, based on monthly returns from May 2018 to April 2021

2Carry refers to the returns or costs of holding a bond.

3Source: J.P. Morgan as of 4/30/2021, based on the J.P. Morgan GBI-EM Global Diversified Index and the J.P. Morgan EMBI Global Diversified Index.

Fund Description

The VanEck Vectors® J.P. Morgan EM Local Currency Bond ETF (EMLC®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan GBI-EM Global Core Index (GBIEMCOR), which is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer.

 
 

  • Fund Ticker

    EMLC
  • Exchange

    NYSE Arca
  • ETF Structure

    Physical
  • Administrator

    Van Eck Associates
  • Custodian

    State Street Bank and Trust Company
  • Index Ticker

    GBIEMCOR
  • Index Rebalancing

    Monthly
  • 2021 Preliminary NAIC Designation7

    3.A

 
as of 06/22/21

  • 30-Day SEC Yield1

    4.69%
  • Total Net Assets

    $3.5B
  • Number of Holdings

    333
  • Options

    Available
  • Gross Expense Ratio2

    0.36%
  • Net Expense Ratio/TER2

    0.30%
  • Distribution Frequency

    Monthly
1,2,7 See Important Disclosure
Why Invest?

Index Key Points

The J.P. Morgan GBI-EM Global Core Index (GBIEMCOR) comprises:

Local currency bonds issued by emerging market governments.

Market-cap weighted:
Country Max: 10%; Min: 1% to 3%  

Index Provider: J.P. Morgan

Index Profile

  • Ticker

    GBIEMCOR
  • Inception Date

    07/22/2010
  • Rebalance Frequency

    Monthly

Index Fundamentals4
as of 06/21/21

  • Yield to Worst

    5.23%
  • Yield to Maturity

    5.23%
  • Effective Duration (yrs)

    5.10
  • Years to Maturity

    7.24
  • Modified Duration (yrs)

    5.18
  • Coupon

    5.53%
 4 See Important Disclosure for definitions.

Top 10 Constituents (%) as of 05/31/21

Total Constituents: 275
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full data
Constituent Name
Coupon
Maturity Weighting (%)
Letra Tesouro Nacional
0.000
01/01/2024
2.20
Republic Of South Africa
10.500
12/21/2026
1.57
Nota Do Tesouro Nacional
10.000
01/01/2023
1.28
Letra Tesouro Nacional
0.000
07/01/2023
1.12
Nota Do Tesouro Nacional
10.000
01/01/2025
1.10
Republic Of South Africa
8.000
01/31/2030
1.05
Republic Of South Africa
8.750
02/28/2048
1.01
Republic Of Philippines
6.250
01/14/2036
1.00
Nota Do Tesouro Nacional
10.000
01/01/2027
0.99
Dominican Republic
9.750
06/05/2026
0.95
Top 10 Total (%) 12.27
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index Country Weightings (%) as of 05/31/21

  • Country

    % of Net Assets
  • Indonesia

    10.00
  • China

    9.93
  • Mexico

    8.98
  • Brazil

    8.89
  • South Africa

    8.15
  • Thailand

    6.73
  • Poland

    6.48
  • Russia

    6.01
  • Malaysia

    5.84
  • Colombia

    4.20
  • Czech

    4.04
  • Hungary

    3.89
  • Romania

    3.30
  • Turkey

    3.00
  • Peru

    3.00
  • Chile

    3.00
  • Dominican Repb.

    1.46
  • Philippines

    1.46
  • Uruguay

    1.45

Index Sector Weightings (%) as of 05/31/21

  • Sector

    % of Net Assets
  • Government

    99.8

Index Credit Quality (%) as of 05/31/21

Composite % of Net Assets
Investment Grade AA 4.04
A 19.41
BBB 54.87
Non-Investment Grade BB 18.50
B 3.00
Total Investment Grade -- 78.32
Total Non-Investment Grade -- 21.50
Not Rated -- 0.18
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 05/31/21

 Average Maturity: 7.23 Years