PCY: Not The Best Emerging Market Yield Strategy

The Invesco Emerging Markets Sovereign Debt ETF targets higher-yielding sovereign debt from riskier emerging markets like Egypt, Nigeria, and Pakistan. PCY offers a 6.54% current yield and a 10.75-year average duration, with monthly distributions around $0.10 per share. Recent years have seen improved performance and rising institutional interest, though five- and ten-year returns were subpar.

Seeking Alpha • Dec 8, 2025

Beyond Volatility: Emerging Market Bond ETFs to Watch Before 2025 Ends

EM bond ETFs like EMB, VWOB, and PCY might draw investor interest as high real yields and a weaker dollar lift emerging markets.

Zacks Investment Research • Dec 4, 2025

Emerging Markets Comeback Story Could Be in Early Stages

When it comes to equities exposure, U.S. large-caps continue to garner the lion's share of capital allocations. However, emerging markets (EM) could finally be in the throes of a comeback.

ETF Trends • Aug 4, 2025

PCY: Better Options Exist

PCY consistently underperforms peers across total return, yield, and risk metrics, making it an inferior choice for emerging market bond exposure. Alternative ETFs like EMHY, EMTL, and VCLT offer better returns, higher credit quality, or more attractive duration profiles for various investor strategies. PCY's average expense ratio and high yield do not compensate for its poor historical performance and less favorable portfolio composition.

Seeking Alpha • Jun 19, 2025

Abating Risks in Emerging Markets Adds Intrigue to Bonds

Lauded for their yield, emerging markets (EM) bonds could be a compelling option even when taking credit risks into account. The macroeconomic environment in particular adds intrigue to funds like the Invesco Emerging Markets Sovereign Debt ETF (PCY).

ETF Trends • Apr 8, 2024

Investors Renew Interest in Emerging Markets Bonds

Amid expectations that the Federal Reserve will reduce interest rates this year — perhaps multiple times, — there's renewed interest in U.S. bonds, both corporate and Treasuries. However, fixed income investors shouldn't take their eye of the international ball.

ETF Trends • Feb 16, 2024

PCY: Way Too Risky Now And Better Options Anyway

Invesco Emerging Markets Sovereign Debt ETF is a high-risk investment due to its exposure to non-investment grade bonds and sensitivity to interest rates. The fund has a relatively high expense ratio compared to its peers, potentially impacting investor returns. Risks include potential defaults by issuing governments, the impact of a stronger U.S. dollar, and a global credit event.

Seeking Alpha • Oct 23, 2023

Pair Yield and Growth With This Emerging Markets Bond ETF

An improving macroeconomic landscape could be providing opportunities in emerging markets (EM) debt. It's an option worth considering, especially if the fixed income goal is to pair yield with growth.

ETF Trends • Aug 14, 2023

VettaFi Voices On: Investing in Emerging Markets

Emerging markets can come with a lot of growth potential. However, they also usually have more volatility than you might get with developed markets.

ETF Trends • Jun 9, 2023

Which Fixed Income ETFs Stand Out in the Current Environment?

Uncertainty around interest rates, inflation, and the possibility of recession are top of mind as advisors allocate to fixed income ETFs. Most investors are staying within the short to intermediate part of the curve, opting for balanced fixed income exposure as opposed to making big bets.

ETF Trends • May 24, 2023