He holds emerging market equities through the Vanguard MSCI Emerging Markets Index (VWO) ETF and emerging market local currency bond funds.

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The Market Vectors Local Currency EM Bond (EMLC) fund is down 1.4% by comparison.

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For example, the Market Vectors Emerging Markets Local Currency Bond (EMLC) ETF is down 7.8% year-to-date.

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Oppenheimer mutual fund bond manager Sara Zervos likes local currency emerging market bonds.

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On July 23rd the firm introduced Market Vectors Emerging Markets Local Currency Bond ETF ( EMLC), a fund whose name describes exactly what it does.

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The iShares 3-7Yr UST (IEI) exchange traded fund is up 6.68% while the Market Vectors Emerging Markets Local Currency (EMLC) bond ETF is up just 1.62%.

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But most of the investors choosing emerging market debt are buying bond funds with local currency debt, rather than buying the sovereign or quasi-sovereign dollar denominated bonds that foreign countries like Brazil also issue.

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