iShares IHEB ETF (ASX:IHEB)
The iShares IHEB ETF provides investors with exposure to the performance of global emerging markets bonds that are US dollar-denominated, hedged back into Australian dollars.
What does the IHEB invest in?
IHEB seeks to track the performance of the JP Morgan EMBI Global Core Index (AUD Hedged), before fees and expenses. This index is designed to measure the performance of US dollar-denominated fixed and floating rate emerging market bonds issued by sovereign and quasi-sovereign entities. These bonds come from emerging market countries such as Mexico, Indonesia, Saudi Arabia and Russia, and most of the bonds have a credit rating between AA and B.
What do investors use IHEB for?
Investors could use the IHEB ETF to diverisify an existing portfolio and seek potentially higher levels of income compared to developed market bonds – all the while potentially minimising the impact of Australian dollar volatility on investment returns.
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