EM bond ETFs attract institutional interest, driving asset managers to expand specialized teams.

Emerging market (EM) bond ETFs have seen growing institutional demand, prompting asset managers like Allspring Global Investments to expand their teams by acquiring specialists. This trend follows strong performance in EM debt, with ETFs like iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC) delivering returns above 12% over the past year. Investors are seeking diversification beyond U.S. markets and AI-driven equities, making EM bonds an attractive option. The new teams will help asset managers better serve institutional clients looking for exposure to sovereign, local currency, and corporate credit in emerging markets.