EMBH seeks to provide exposure to emerging market bonds while mitigating interest rate risk by holding EMB, the iShares J.P. Morgan USD Emerging Markets Bond ETF, and short positions in interest rate swaps. EMB seeks investment results that correspond generally to the price and yield performance before fees and expenses of the J.P. Morgan EMBI Global Core Index, an index composed of U.S. dollar-denominated, government bonds issued by emerging market countries. The index is a broad, diverse U.S. dollar denominated emerging markets debt benchmark that tracks the total return of actively traded external debt instruments in emerging market countries. The methodology is designed to distribute the weight of each country within the Underlying Index by limiting the weights of countries with higher debt outstanding and reallocating this excess to countries with lower debt outstanding.
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