iShares J.P. Morgan EM High Yield Bond ETF Price & Performance (EMHY)

Emerging markets debt has demonstrated notable resilience over the past year, with hard currency credit outperforming weaker local currency markets. This performance comes despite the challenges posed by a strong U.S. dollar, raising questions about future prospects for EM debt investments as we progress through 2025.1

The Vanguard S&P 500 ETF attracted $14 billion in net flows, reflecting investor confidence as the S&P 500 posted consecutive gains. This inflow represents a 2.33% increase in assets under management, marking a significant shift in sentiment following Treasury Secretary Bessent's remarks on market corrections.2

Investors are gravitating toward quality ETFs like iShares MSCI USA Quality Factor and SPDR MSCI USA StrategicFactors. These funds, designed for defensive investing, offer lower volatility and consistent profitability, making them attractive options as economic uncertainty and geopolitical tensions persist.3