State Street® SPDR® Bloomberg Emerging Markets Local Bond UCITS ETF (Acc)

What this fund is

State Street® SPDR® Bloomberg Emerging Markets Local Bond UCITS ETF (Acc) is an exchange-traded fund (ETF) from SPDR, traded under the ticker EMDA (ISIN IE00BFWFPY67). One trade buys a whole basket of holdings, so your money is spread out instead of riding on a single company. In plain terms it is about lending to governments and companies in return for regular interest, which tends to be steadier than shares but grows more slowly, spread across its target market. It follows the Bloomberg Emerging Markets Local Currency Liquid Government Bond Index index (passive investing): it tracks the market rather than relying on a manager, keeping running costs down, and its largest holdings include LETRA TESOURO NACIONAL 0 01/01/2029, MEX BONOS DESARR FIX RT 8.5 02/28/2030 and REPUBLIC OF SOUTH AFRICA 8.75 02/28/2048. Spread across roughly 621 holdings (the ten largest ≈ 7.2%), no one position makes or breaks the fund.

By geography it is weighted towards ~10% South Korea, ~10% China and ~9.1% India. Its heaviest sectors are ~77.1% Government. Funds like this are often used as the steadier, lower-swing part of a portfolio — the ballast that cushions the ups and downs of shares. Its ongoing charge (TER) is 0.55% a year — about €55 a year on a €10,000 holding, taken automatically from the fund. Income such as dividends is automatically reinvested inside the fund (an accumulating share class), so returns compound without you doing anything.

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in USD. On the standard KID risk scale it is rated 3 out of 7 and its price has swung about 5.4% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2018, and its KID suggests a holding period of 3 years. Like any investment, it can lose value as well as gain, and what it did before does not predict what it will do next. (Fund data sourced from SPDR.)