This is an actively managed ETF that invests mainly in dollar-denominated emerging market bonds. It holds a broad range of fixed-rate and floating-rate bonds issued by emerging market governments, quasi-government entities, and corporations, seeking both interest income and capital appreciation.

It suits income investors who want diversified exposure to the high interest income of emerging market bonds while relying on a professional management team's security selection.

It is an ETF run with an active management approach by Global X.

This is an active strategy in which the management team selects emerging market bonds directly rather than tracking a specific index. It centers on dollar-denominated bonds but may also include some local-currency bonds, and it diversifies broadly by country, issuer type, and credit quality to pursue income across the emerging market bond universe.

• Active security selection by a professional management team
• Broad diversification across emerging market government, quasi-government, and corporate bonds

Assets under management (AUM) stand at $250.6M, and the total expense ratio is 0.39% per year.

Its distinguishing feature versus index-tracking emerging market bond ETFs is that the management team selects securities at its own discretion, and its fee is somewhat higher than that of passive funds.

Emerging market bond returns have tended to fluctuate with the direction of US interest rates, the strength of the dollar, and emerging market credit spreads. Depending on the rate and currency environment, price volatility can also increase.

Fund flows vary with income demand and risk appetite toward emerging market assets. In periods when dollar strength or emerging market credit concerns come to the fore, outflows can occur.

Its strengths are the high income of emerging market bonds and active diversification, while its weaknesses are the risks tied to credit, currency, and interest rate movements.

BNDX and IUSB, which also appear in the table, are low-cost core bond ETFs that diversify broadly across international and US aggregate bonds, so their risk and return profiles differ from EMBD, which concentrates on emerging markets. BINC, PYLD, and JCPB are also actively managed bond ETFs, but they differ in that they invest broadly across a variety of bond sectors. For a more direct comparison within emerging market bonds, you can also consider EMB and PCY, which track dollar-denominated government bond indexes, EMLC, which gives exposure to local-currency emerging market government bonds, and VWOB if you want broad diversification across emerging market government bonds.

These are the key points to review before investing in EMBD. Emerging market bonds carry credit, currency, and interest rate risks along with high income potential, so it is necessary to check your position size and your own risk tolerance in advance.

The credit risk of emerging market issuers and changes in US interest rates and the dollar exchange rate are the main drivers of price movements. During risk-averse market phases, emerging market bonds can weaken together, so be mindful of the possibility of short-term losses.

It is a suitable choice for investors who want to approach the high income of emerging market bonds through active diversification. If cost is the priority, the passive EMB and PCY fit better, while this ETF fits investors who value the management team's security selection.