Emerging-market government bonds (USD)
This fund buys bonds issued in US dollars by governments of developing countries like Brazil, Mexico and Indonesia. Because these countries are seen as riskier, the bonds pay more interest. It is a way to earn higher yield while spreading across many emerging nations.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Higher yield than US Treasuries
- Spread across many countries
- Priced in US dollars, not local money
- Can fall in global risk-off times
- Some governments may default
- US dollar currency risk for SGD investors
About this fund
The fund tracks the J.P. Morgan EMBI Global Core index, holding US dollar denominated sovereign and quasi-sovereign bonds from emerging-market countries. Issuing in US dollars removes local-currency risk for the fund but adds the credit risk of less stable governments. It is one of the largest UCITS emerging-market bond ETFs.
Available on Interactive Brokers
Low-cost access to Emerging-market government bonds (USD) and 10,000+ funds worldwide.
Frequently asked questions
Is JPEA.L accumulating or distributing?
iShares J.P. Morgan $ EM Bond UCITS ETF USD (Acc) (JPEA.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for JPEA.L?
JPEA.L has a total expense ratio (TER) of 0.45% per year. On a $10,000 holding that is roughly $45 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy JPEA.L on Interactive Brokers?
Yes. JPEA.L trades on LSE, USD and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does JPEA.L invest in?
iShares J.P. Morgan $ EM Bond UCITS ETF USD (Acc) (JPEA.L) tracks the J.P. Morgan EMBI Global Core Index. This fund buys bonds issued in US dollars by governments of developing countries like Brazil, Mexico and Indonesia. You buy one fund and get the whole basket in a single trade.
Is JPEA.L a UCITS ETF, and where is it domiciled?
Yes, JPEA.L is a UCITS ETF domiciled in Ireland. For non-US investors, Irish-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is JPEA.L?
On the TickerCompare 1 to 5 scale, JPEA.L is rated higher risk (4/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.