Emerging market bond ETFs are getting a lot of attention amid renewed concerns over global economic growth, potential Brexit from the European Union and a roller-coaster ride of oil prices.

Given the turmoil in the global markets and low yield all over the world, income-starved investors are chasing better returns. On Friday (June 10, 2016), 10-year note yields dropped to 1.639%, the lowest level in the last three years. Meanwhile, government bond yields in Japan, Germany and the U.K. also touched record lows as of June 10, 2016.

In such a situation, investors’ craving for a steady current income is not surprising. One space that offers solace is emerging market bonds because of its solid yield. Fading hope of frequent Fed hikes this year has injected fresh optimism into the emerging markets. Although the Federal Reserve Chair Janet Yellen stated earlier this month that the U.S. economy was making progress, she remained silent on the timing of the impending interest-rate hike. This coupled with shockingly downbeat job data for the month of May has led to speculations that a June rate hike is in all possibility off the table.

Emerging market bond ETFs offer compelling yields. Additionally, these funds look more attractive thanks to the recent struggles encountered in the U.S. and other developed nations.  Also, emerging market bonds and their related ETFs provide investors greater protection to capital gains than emerging market equities.

Keeping this in mind, we highlight four emerging market bond ETFs that often offer high yields.

iShares JPMorgan USD Emerging Markets Bond (EMB - ETF report)

This ETF tracks the performance of J.P. Morgan EMBI Global Core Index. It currently holds 310 securities with average years to maturity of 11.10 and an effective duration of 7.08 years. Mexico, Russia and Indonesia are the top three countries. About 56% of the bonds are rated BBB or higher.  

The fund has amassed $6.9 billion in its asset base and charges 40 bps in fees per year. It trades in a good volume of more than 1.3 million shares a day on average and has a good yield of 4.34% in annual dividend. The ETF has gained about 1.6% in the last 10 days (as of June10, 2016).

PowerShares Emerging Markets Sovereign Debt ETF (PCY - ETF report)

This 88-securitiy ETF includes bonds issued in approximately 22 emerging-market countries and tracks the DB Emerging Market USD Liquid Balanced Index. The fund has an asset base of $3.2 billion and charges 50 bps in fees. The fund’s effective duration is 8.67 years while its years to maturity are 14.55. Around half of the bonds are rated BBB or higher. The product yields 5.26% annually and has added 1.9% in the last 10 days (as of June 10, 2016).

Market Vectors Emerging Markets Local Currency Bond ETF (EMLC -ETF report)

This fund tracks the J.P. Morgan GBI-EMG Core Index. It holds 222 securities in its basket with a modified duration of 4.92 years and average years to maturity of 7.22. In terms of country exposure, Poland (9.5%), Mexico (8.7%) and Brazil (8.5%) occupy the top three spots. About 72% of the portfolio is focused on investment grade bonds with BBB or higher ratings.

EMLC is a popular ETF in the local currency emerging bond space with AUM of over $1.5 billion and average daily volume of 777,000 shares. It charges 47 bps in annual fees and has gained 2.2% in last 10 days (as of June 10, 2016). Additionally, the product has an excellent dividend yield of 5.52% per annum.

SPDR Barclays Capital Emerging Market Local Bond ETF (EBND - ETF report)

This product tracks the Barclays EM Local Currency Government Diversified Index. In total, the fund holds 298 securities with an average maturity of 7.40 years and modified adjusted duration of 5.36 years. In terms of credit quality, it focuses on bonds having Baa or higher ratings with almost 85% weight.  

South Korea (12.6%) and Brazil (11.9%) take the top two spots. EBND has AUM of $177.8 million and average daily volume of 65,000 shares. Expense ratio comes in at 0.50%. The fund is up over 1.8% in the last 10 days (as of June 10, 2016) and has a 4.38% 30-Day SEC yield.