Neuberger Emerging Markets Debt Hard Currency ETF (NEMD)

On our desk, we are looking closely at how NEMD captures emerging market strength. Given that the fund delivered a mid-teens gain in 2025, the overarching sentiment is that sound EM fundamentals and independent easing policies could allow the asset class to repeat as a fixed income star. However, we remain cautious regarding geopolitical volatility and US tariff measures under the current administration.

Analyzing the risk profile of NEMD reveals a heavy exposure to frontier and emerging market sovereign and corporate debt—including holdings in countries like Argentina, Egypt, and Venezuela. While the 5.76% dividend yield is appealing, the structural risks—such as currency redenomination, potential default on sovereign debt, and lower liquidity compared to developed markets—demand constant vigilance and rigorous bottom-up research.

From a quantitative perspective, when evaluating actively managed hard currency ETFs like NEMD, you have to weigh the 0.60% expense ratio against the expertise of Neuberger Berman's global team scanning 90+ EM countries. Watch how the fund manages duration through its US Treasury note futures allocations alongside volatile high-yielding sovereign paper.