Core Insights - Emerging markets (EM) are experiencing fiscal dominance over developed markets (DM), leading to increased benefits for EM bonds [1][2][3] - The shift in global balance since the late 1990s has seen EMs running surpluses while DMs face persistent deficits, influenced by differing policy approaches [2][7] - Geopolitical factors are favoring EMs, driving capital towards surplus-running EMs and higher-yielding local bonds [7] Investment Strategy - The VanEck Emerging Markets Bond ETF employs a blended strategy across the entire EM bond spectrum, aiming to maximize opportunities and manage risks [4] - The fund has historically outperformed global and U.S. bond benchmarks despite global disruptions, indicating a strong active management approach [4] - The active strategy focuses on fundamental value relative to bond risk premia, allowing for capitalizing on shifts in the market while avoiding troubled issuers [4][7] Market Dynamics - Recent outperformance of EM debt is attributed to favorable fundamentals, with opportunities varying by country, currency, and cycle [7] - The structural tailwind for emerging market bonds is reinforced by reserve diversification and geopolitical developments [7]