VanEck Emerging Markets High Yield Bond ETF Price & Performance (HYEM)

Investors are responding to ongoing tariff threats and rising volatility by pivoting toward safer bond ETF options. Notably, Australian subordinated debt and government bond ETFs have seen substantial inflows, with some funds nearly doubling in size. Many fixed income ETFs delivered robust returns, with top performers earning over 9% annually.1

Emerging market local currency bond ETFs have outpaced their dollar-denominated counterparts, benefiting from resilient EM currencies and lower debt levels. Funds like VanEck JP Morgan EM Local Currency Bond ETF are up over 5% this year, while bearish U.S. dollar ETFs have also posted double-digit gains as the greenback remains subdued.2345

Despite heightened trade tensions, China’s fiscal and monetary stimulus is helping offset tariff impacts, creating pockets of opportunity in emerging markets. Investors are targeting quality businesses with domestic growth drivers, especially in India and the Middle East, where valuations have become more attractive amid market volatility.6