EMLC holds sovereign debt issued by emerging market governments. EMLC's holdings are denominated in the local currencies of issuance, giving investors pure exposure to the markets it covers at the cost of added FX volatility. The bulk of EMLC is in debt expiring in 10 years or less, so investors needing longer-dated issues should look elsewhere. EMLC aims to cover the emerging markets space in a balanced manner. No country holds more than about a tenth of the overall portfolio weight. Take note: Similar to other funds in the emerging markets space, much of the portfolio doesn't trade during US hours. Effective February 28, 2020, the methodology for the underlying index was modified to include China exposure and to take a tiered approach to weighting. Minimum country exposure is limited to between 1% and 3% and then market value-weighted within the country.
