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VanEck Launches EMBX

A Game Changer in Bond Investing

VanEck, an established name in investment management, has taken a bold step forward by launching the VanEck Emerging Markets Bond ETF (EMBX), which started trading on October 6, 2025. This venture marks a significant transition from a traditional open-end mutual fund, previously known as the VanEck Emerging Markets Bond Fund, to the versatile structure of an ETF, thereby expanding investor access and potential benefits.

The decision to convert the fund into an ETF was executed on a tax-free basis for existing shareholders. It retains the seasoned portfolio management team, renowned for their disciplined and strategic investment approach. This transformation not only upholds the same investment objectives but enhances the overall investor experience by providing intraday liquidity, daily transparency, and operational efficiencies that ETFs are known for.

Performance Highlights

In the last five years, the previous fund has outperformed its benchmark, delivering an impressive annualized return of 4.9% per year, significantly higher than the 2.3% of its comparative benchmark and the -3.0% yield from Treasury securities. Since its inception in 2012, the fund has consistently ranked at the top percentile within its Morningstar category, affirming its effectiveness and strategic allocation in sovereign and corporate bonds—both in U.S. dollars and local currencies.

With approximately $492.38 million in assets under management as of September 30, 2025, the fund is not only competitive but exemplifies robust management. Eric Fine, the portfolio manager, attributes the success of emerging market bonds over Treasuries to sound fiscal policies, independent central banks, and their popularity across emerging markets, as opposed to developed economies.

A Team with Experience

The VanEck Emerging Markets Fixed Income team has over 25 years of cumulative experience, led by Eric Fine, accompanied by Deputy Portfolio Manager David Austerweil, Chief Economist Natalia Gurushina, and Senior Corporate Analyst Robert Schmieder. Their collective expertise positions EMBX for continued success and strategic investment opportunities.

Advantages of EMBX

Investors can look forward to several benefits with the new ETF structure. Some of these advantages include:

• - Daily liquidity: Investors can buy and sell shares throughout the trading day.
• - Transparency: Daily updates on portfolio contents are available, enabling investors to monitor their investments closely.
• - Cost-efficiency: The ETF structure could offer potential tax efficiencies compared to traditional mutual funds.

Strategic Commitment

According to Ed Lopez, Managing Director and Head of Product Management at VanEck, the launch of EMBX underscores VanEck's ongoing commitment to enhancing investor access to high-quality assets. López emphasizes how EMBX offers a unique opportunity to invest in a strategy that boasts consistent performance.

As investors navigate their financial journeys, EMBX stands out as an enticing option for those looking to diversify their portfolios with emerging market bonds. With its robust structure, experienced management team, and proven performance, the VanEck Emerging Markets Bond ETF is positioned to be a notable player in the investment landscape.

For those interested in deeper insights, VanEck offers comprehensive information on performance data, portfolio holdings, and the investment process through the VanEck Emerging Markets Bond ETF fund page.

This launch not only exemplifies VanEck’s innovative spirit but also marks a significant step toward empowering investors in a rapidly changing financial environment.