BondBloxx JP Morgan USD EM 1-10 Yr BdETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in corporate bonds and an overweight in A rated bonds compared with category peers. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall affordable fees and high portfolio management retention.

Analyst Rating

BondBloxx JP Morgan USD EM 1-10 Yr BdETF earns an Above Average Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The most meaningful contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 100% also contributes to the process. Lastly, the process is limited by the size of its portfolio management team, only two portfolio managers.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks to track the investment results of the J.P. Morgan EMBI Global Diversified Liquid 1-10 Year Maturity Index composed of U.S. dollar-denominated emerging market bonds with an average life of below 10 years.  Under normal circumstances, the fund will invest at least 80% of its net assets in emerging markets bonds with an average life of 1-10 years denominated in U.S. dollars, and either directly or indirectly. It is non-diversified.  

 This strategy has a 6.1% 12-month yield, higher than its average peer's 5.9%. While a higher yield may deliver more income, it also tends to indicate higher credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been higher than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated BB. In terms of long-term interest-rate risk, this strategy is on par with peers. The longer a strategy's duration, the more sensitive it is to shifts in interest rates. This fund, with a 4.2-year duration, is expected to gain 4.2% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

Above Average

Process

BondBloxx Investment Management LLC’s team receives An Average People Pillar rating. The largest contributor to the rating is the firm's five-year retention rate of 100%. A low cost, with fees that rank in its category's cheapest quintile, also contributes to the rating. Fees detract from net returns, so the managers have a lower expense hurdle to overcome. Lastly, the rating is limited by the number of months that the management team has been running this vehicle together. Since this is a newly incepted product, more time is needed to monitor the team's capability at executing the strategy.

Average

People

Since its inception only two years ago, BondBloxx Investment Management LLC has demonstrated that it can be trusted as much as the next asset manager. As a result, it has an Average Parent Pillar rating. BondBloxx Investment Management LLC currently oversees 25 vehicles, with a total of $2.66 billion under management and a bench of 13 fund managers. BondBloxx Investment Management LLC's management team is composed of mostly veteran managers, averaging 20 years of industry experience. A firm's ability to retain its talent is a crucial indicator of its culture. This has been a strength of BondBloxx Investment Management LLC, which has had lower-than-average manager turnover. 

 BondBloxx Investment Management LLC deserves plaudits for its commitment to low fees for its open-end and exchange-traded funds, which showcases its willingness to prioritize investors. The firm's average net expense ratio across all funds is in the cheapest quintile of firms.  

 To keep an Average rating, BondBloxx Investment Management LLC will be expected to maintain a consistent track record of positive investor experience.

Parent

BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF

XEMD tracks a market value-weighted index of USD-denominated debt issued by sovereign and quasi-sovereign issuers from emerging markets.

Emerging markets debt proved sturdy in 2023. And more of the same could be on the way this year.

Emerging Markets Bonds Could Be 2024 Bond Stars

BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF

BondBloxx USD High Yield Bond Energy Sector ETF

BondBloxx USD High Yield Bond Industrial Sector ETF

Last year, the market consensus was that there would be a recession in the second half of 2023. Instead, economic indicators have consistently outperformed market expectations.

A Resilient Economy Means Opportunities in Fixed Income

Despite poor performance in 2022, emerging markets sovereign debt funds outperformed U.S. Treasury and investment-grade corporate bond indexes in 2023. And given resilient global conditions, including moderate inflation and a weakening U.S. dollar, EM debt could be an appealing asset.

Consider a Shorter Duration Approach With Emerging Markets Debt

It's the end of the year, so for investors, that means seeking tax-loss harvesting opportunities. And emerging markets bond investors in particular should really consider tax-loss-harvesting their positions.

Harvest Emerging Markets Bond Tax Losses With XEMD

While the headlines for emerging markets (EM) weren't great in 2022, things have picked up since last year. Local EM interest rates and currency markets have been quite compelling, thanks in part to high interest rates and decelerating inflation momentum.

The Benefits of Emerging Markets Debt

Emerging markets debt has been a top fixed income performer for the third quarter, according to BondBloxx. This is especially noteworthy given the lower duration and higher income component.

Target High-Performing Emerging Markets Debt With XEMD

Institutional investors are becoming increasingly interested in emerging markets debt. Considering EM debt yields are at their highest level in 10 years, that's not surprising.

Invest in Emerging Markets Debt With Confidence Through XEMD

After more than a decade of very low Treasury rates and a positively sloped yield curve, investors have been accustomed to reaching further out on the risk spectrum and maturity curve for any reasonable level of yield.

With Short-Term Treasury Yields at 5%, It's Time to Rethink Fixed Income

While emerging markets debt was among the worst-performing fixed income asset classes in 2022, investors are becoming more bullish on the sector this year. Following China easing up on its zero-COVID policy, data from BofA Global Research show that investors pumped a record $12.

Use XEMD for Shorter Duration Emerging Markets Debt Exposure

Much of the headlines surrounding emerging markets investing have been negative. Funds benchmarked to indices like the J.P.

How XEMD Can Help With Emerging Markets Tax Loss Harvesting

Amid record inflation numbers and the expectation of a more hawkish Fed, high yield fixed income saw a rally within several sectors for the week ended July 15. High yield financials bonds and technology, media, and telecom bonds both returned 0.5% for the week, according to BondBloxx Investment Management's weekly market commentary.

High Yield Corporates & Financials See Rally

Investors showed renewed interest in high yield fixed income for the week ended July 8, even as Treasuries sold off in the face of stronger than expected economic data.

Investors Show Renewed Interest in High Yield Fixed Income

Investing in emerging markets exposes investors to interest rate risk, since most existing emerging market bond indexes that portfolio managers are typically benchmarked against have long durations. Due to record high inflation, it's been a historically bad year for bond market losses, particularly emerging market bonds.

Manage Duration Exposure With This Emerging Markets Debt ETF

BondBloxx Investment Management announced the launch of the BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD), which begins trading today on CBOE. The fund tracks the J.P.

BondBloxx Launches Duration-Focused Emerging Market ETF

The issuer focuses on fixed income products.

News for BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF ETF (XEMD)