- For the period December 31, 2020 to March 31, 2021, the Global X Emerging Markets Bond ETF (EMBD), sub-advised and actively managed by Mirae Asset Global Investments (USA) LLC, posted a loss of -3.95% (including dividends).
- During Q1 2021, the Fund outperformed its benchmark by +133 basis points. EMBD's lower duration relative to its benchmark was the main contributor to outperformance.
- The main detractor from performance was EMBD's overweight in Morocco. Morocco was downgraded to junk status by Moody's and S&P as the tourism-dependent country suffered a larger economic contraction due to the slow recovery of the European travel industry.
- Our outlook anticipates that demand for carry assets will remain high given that we remain in a zero-rate environment thanks to major central banks maintaining their QE policies.
For further details see:
Emerging Markets Bond ETF (EMBD): Q1 2021 Commentary