L'ETF "PowerShares Emerging Markets Sovereign Debt Portfolio" se base sur l'indice DB Emerging Market USD Liquid Balanced. Le fonds investit au moins 90% de ses actifs dans l'indice, qui se compose d'obligations souveraines de plus d'une vingtaine de pays émergents. Ces derniers sont sélectionnés annuellement, tandis que l'indice est pondéré chaque trimestre. PCY fait partie de ma nouvelle stratégie "Ex-US International ETFs and Dividend Stocks".
The fund's top ten holdings are:
| Top 10 Holdings | |
|---|---|
| Romania Medium Term Nts Reg S (—) | 6.01% |
| Islamic Rep Pakistan (—) | 3.15% |
| Vietnam Socialist Rep (—) | 3.07% |
| Korea Rep (—) | 3.06% |
| Korea Rep (—) | 3.06% |
| Colombia Rep (—) | 2.31% |
| El Salvador Rep (—) | 2.31% |
| Republic of Turkey (—) | 2.24% |
| Uruguay Rep (—) | 2.20% |
| Brazil Federative Rep (—) | 2.19% |
| % of Total Holdings | 29.60% |
The fund's credit quality is distributed as follows:
| S&P | Moody's |
| AA: 4% | Aa: 4% |
| A: 8% | A: 13% |
| BBB: 42% | Baa: 41% |
| BB: 34% | Ba: 25% |
| B: 11% | B: 17% |
The maturity of ETF bonds is divided into the following durations:
| 0 - 1 years | 0.00% |
| 1 - 5 | 10.12% |
| 5 - 10 | 35.42% |
| 10 - 15 | 9.04% |
| 15 - 20 | 7.33% |
| 20 - 25 | 18.96% |
| 25 and Over | 19.14% |
For the management of its ETF, Invesco has an expense ratio of 0.50%. The average return is generous, with 6.38%. PCY offers a little extra for annuitants: Distributions are paid to you monthly.
There volatility en CHF du fonds, avec 10.21%, est certes un brin haute pour des obligations, mais reste tout de même tout à fait abordable tenant compte du rendement que l'on peut obtenir. Le titre offre par ailleurs une protection contre les variations du dollar, avec un $risk de -0.23.
PCY is therefore an interesting investment for hedge your portfolio against stock market risk and against currency risk. I plan to take a position there soon.
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Hello Jerome,
Are there management fees to pay on ETFs? If so, what are they?
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Hello Fabrice,
Fees are taken directly from the fund value. They amount to 0.50% for PCY.
The “closed-end fund” variant (instead of an ETF), with EDD (Morgan Stanley Emerging Markets Domestic Debt), is also possible.
Thanks for your comment birdienumnum
I just took a look at Bloomberg's PCY: I find 5.11 of Div Yield…, not 6.38…. Did I make a mistake somewhere?
Hello. I just want to remind you that I give the average return on all my securities. This avoids errors on securities that have just been destroyed by the market, most of the time for excellent reasons, or on those whose price has just climbed, also very often for good reasons. This is less important on a bond ETF, but I keep the same principle for all my investments. Best regards.