There's a Lot to Like About NEMD ETF

Core Viewpoint - Regional diversification in investment portfolios is essential, particularly in fixed income, as emerging market bonds are outperforming the Bloomberg US Aggregate Bond Index year-to-date [1][3]. Group 1: Emerging Markets Debt (EMD) Performance - Emerging market bonds are significantly outperforming the S&P 500 and the Bloomberg US Aggregate Bond Index, highlighting the importance of including them in fixed income portfolios [1]. - The Neuberger Berman Emerging Markets Debt Hard Currency ETF (NEMD) is gaining attention due to its strong performance and active management approach [2][3]. Group 2: Factors Driving NEMD's Momentum - Monetary easing and the desire for geographic diversity in fixed income portfolios are contributing to the growing popularity of ETFs like NEMD [3]. - Improving corporate balance sheets in developing markets are leading to credit rating upgrades, which positively impact bond prices and financing costs [4]. Group 3: Economic and Currency Influences - A weaker US dollar is beneficial for hard currency debt, which NEMD holds, and this trend may continue, providing further support for emerging market debt [5][6]. - The International Monetary Fund (IMF) projects a growth differential of 2.6% for emerging markets compared to developed markets in 2025, indicating a favorable economic outlook for EMD [7].