Why the Emerging Market Currency Selloff Will Worsen

Fed chairman Ben Bernanke is at odds with Brazil, China, and even the IMF over his policies. Please consider the BBC report Bernanke defends Federal Reserve stimulus measures Brazil has said US monetary easing to keep interest rates low and weaken the dollar has hurt emerging economies. And International Monetary Fund chief Christine Lagarde warned on Sunday of consequent asset bubbles developing in emerging nations.

By Soos Global Capital:On the heels of my August 29, 2011, article titled, "How Emerging Markets Infrastructures Might Build Up Portfolios", and while on the subject of emerging markets opportunities, here’s another investment to consider - an ETF of emerging markets' fixed income securities in local currency ...

By Tom Lydon: Investors are taking a harder look across the fixed-income spectrum for alternative sources of yields. While many have branched into other U.S. debt securities such as junk bonds, investors can also browse through emerging market bond exchange traded funds to meet their income needs.

ByThomas Furda:Global emerging market (GEM) local currency debt ETFs enable investors to capture income and potential currency appreciation relative to the USD. While yields are a major reason to invest in debt funds, currency exposures are also an important consideration.This article outlines the four major GEM local currency debt ETFs and a targeted Asia-only debt fund investors can consider. GEM Local Currency Debt ETFs (click to enlarge)

By Ron Rowland: BlackRock launched iShares Emerging Markets Local Currency Bond Fund (LEMB) on October 20, 2011. The new ETF specializes in publicly issued emerging market sovereign debt in the issuer’s local currency. LEMB already quickly gathered more than $30 million in assets despite a crowded field of similar ETFs.

Ron Rowland submits:State Street Global Advisors on Thursday (2/24/11) rolled out two new ETFs targeting local currency bonds and dividend producing stocks of emerging market nations: SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND) and SPDR S&P Emerging Markets Dividend ETF (EDIV).

By Tom Lydon: Emerging market equities and bonds have become standard in investors portfolios, as stronger economic growth in these countries is evident. Emerging market government issued bond exchange traded funds (ETFs) have increased in popularity due to their high yield and diversification benefits.