FYI: Yields above 5% are difficult for investors to find, as very low interest rates and a bond boom have pushed yields lower.
If your main objective as an investor is to generate income while avoiding stock-market risk, an emerging-markets bond fund may not be what you would ordinarily consider. But the developed world is awash in cash, and debt with negative yields-to-maturity now exceeds $17 trillion, according to Bloomberg. Ten-year U.S. Treasury notes yield only 1.73% TMUBMUSD10Y, -2.40% and 30-year Treasury bonds TMUBMUSD30Y, -2.34% are yielding a measly 2.18%.
So emerging markets beckon, and sufficient diversification may put you at ease. The $517 million TIAA-CREF Emerging Markets Debt Fund TEDLX, -0.50%, which carries a five-star rating (the highest) from research firm Morningstar, held 256 investments as of Aug. 31. Morningstar has the fund’s performance in the ninth percentile among 252 emerging markets funds run by U.S. companies over the past three years, with the percentile ranking improving to five for one year and four for 2019 (through Sept. 24). The fund has been around for five years.
Regards,
Ted
https://www.marketwatch.com/story/a-bond-fund-that-yields-over-5-how-these-aggressive-managers-provide-the-extra-returns-2019-09-26/printM* Snapshot TEDLX:
https://www.morningstar.com/funds/xnas/tedlx/quoteLipper Snapshot TEDLX:
https://www.marketwatch.com/investing/fund/tedlx
