At a glance
EMHC charges 0.23% a year, below the 0.28% average of the 7 funds most like it (the 3rd cheapest of 8). It has $271.8M in assets, the 5th largest of that group; it paid 6.34% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.6% with distributions reinvested, 5th of those 8 funds; over three years it returned +9.2% a year. At its worst it fell 24.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 33 months after the low. Its ten largest positions make up 7.8% of the fund, out of 544 in all.
The short version
SPDR Bloomberg Emerging Markets USD Bond ETF (EMHC) is a State Street index fund that holds US dollar bonds issued by emerging-market governments and government-owned companies, from Brazil and Argentina to Qatar and Indonesia. Its 0.23% expense ratio is below the 0.28% average of similar funds, although Vanguard's VWOB charges 0.15%. It limits each country to 5% of the index and pays income monthly. Its trailing yield was 6.34% as of October 27, 2026.
Price history
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EMHC -0.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EMHC official prospectus, to Dec 31, 2025 | — | +13.54% | — | — | — | +1.89% |
| EMHC price data to Oct 27, 2026 | -1.1% | -0.6% | +9.2% | +1.0% | — | +1.3% |
- Over the year to Oct 27, 2026, EMHC returned -0.6%, 5th of 8 among similar funds.
- Its 5-year annualized return was +1.0%.
- Its worst full calendar year was 2022 (-17.7%); its best was 2025 (+14.0%).
- The deepest fall in its price history was 28% (Sep 2, 2021 to Oct 20, 2022), recovered by Sep 5, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.1% | — |
| 2025 | +14.0% | +13.54% |
| 2024 | +3.5% | +4.17% |
| 2023 | +10.1% | +9.71% |
| 2022 | -17.7% | -17.19% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 23.7% over that stretch · deepest drop along the way 24.2%, back to its old high 33 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0700 | |
| 2025 | $1.5500 | +9.2% |
| 2024 | $1.4200 | +13.6% |
| 2023 | $1.2500 | +4.2% |
| 2022 | $1.2000 |
What's inside
As of Jun 30, 2026, the fund held 544 securities; the ten largest made up 7.77% of assets.
| Holding | Weight | |
|---|---|---|
| Argentina Republic Government International Bonds Bonds and notes | 1.65% | |
| Argentina Republic Government International Bonds Bonds and notes | 1.06% | |
| Argentina Republic Government International Bonds Bonds and notes | 0.94% | |
| Argentina Republic Government International Bonds Bonds and notes | 0.78% | |
| Brazil Government International Bonds Bonds and notes | 0.64% | |
| Ecuador Government International Bonds Bonds and notes | 0.59% | |
| STATE OF QATAR Bonds and notes | 0.55% | |
| Indonesia Government International Bonds Bonds and notes | 0.54% | |
| KUWAIT INTL BOND Bonds and notes | 0.52% | |
| Qatar Government International Bonds Bonds and notes | 0.51% | |
| Hungary Government International Bonds Bonds and notes | 0.49% | |
| Brazil Government International Bonds Bonds and notes | 0.46% | |
| CHINA GOVT INTL BOND Bonds and notes | 0.46% | |
| CODELCO INC Bonds and notes | 0.45% | |
| CBB INTL SUKUK PROG WLL Bonds and notes | 0.44% |
By country
Brazil 4.91%Argentina 4.9%Qatar 4.9%Indonesia 4.89%Turkey 4.89%By issuer
Foreign governments 86.39%Companies 11.34%The bonds mature in 11.2 years on average (weighted by size), with an average coupon of 5.56%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $22.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.62%, +0.90%, +0.72%.
How it works
EMHC tracks the Bloomberg Emerging Market USD Sovereign and Sovereign Owned Index. The index holds US dollar bonds from emerging-market governments, from issuers whose debt the government guarantees, and from companies the government owns 100%, such as Chile's copper producer Codelco. A country counts as emerging if the World Bank or the IMF classifies it that way. Bonds of any credit quality qualify, including "junk" bonds, which carry a higher risk of default. Each bond needs at least $1 billion outstanding, at least one year left until it matures, and an original term of more than two and a half years.
Bonds are weighted by market value, but no country can exceed 5%. Any weight above that cap is spread across the other countries. The index rebalances on the last business day of each month. Because of the cap, Brazil, Argentina, Qatar, Indonesia and Turkey each made up about 4.9% of the fund as of June 30, 2026.
The fund uses sampling, which means it can own a subset of the index rather than every bond. It held 544 issues as of June 30, 2026, while the index had about 696 as of July 31, 2026. At least 80% of its assets must be in index securities. It may also use swaps and futures, and it held one small 10-year Treasury futures position. With an average maturity of 11.2 years, its price is sensitive to changes in interest rates.
What it really costs
- EMHC charges 0.23% a year, versus an average of 0.28% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $24 in the first year and $293 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EMHC | $24 | $74 | $130 | $293 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It offers high monthly income, but it holds below-investment-grade government debt and has lost 28% from peak to trough, which makes it better suited to a small supporting position than a core bond holding.
EMHC can add monthly income and lending exposure beyond the US and other developed markets. Its trailing yield was 6.34% as of October 27, 2026. It costs 0.23% a year, which works out to $24 in the first year and $293 over ten years under the SEC's standard $10,000 example. The tradeoff is risk. The fund launched in April 2021, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market it fell 24.2% and took 33 months to recover. Its deepest drop was 28%, from September 2021 to October 2022, and it took about 34.5 months to recover. Its worst calendar year was 2022, at -17.19%. Anyone who had to sell shares in late 2022 to cover spending would have locked in large losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income and can accept emerging-market risk; the trailing yield was 6.34% as of October 27, 2026.
- Investors who want US dollar emerging-market government debt spread across about 544 bonds, with each country capped near 5%.
- Cost-conscious investors comparing emerging-market bond funds: its 0.23% fee is below the 0.28% peer average and the 0.39% that EMB and JPMB charge.
Look elsewhere if
- Retirees who may need to sell in a downturn: the fund fell 28% from 2021 to 2022 and took about 34.5 months to recover.
- Investors who want the lowest fee or a much larger fund: Vanguard's VWOB charges 0.15% and held about $6.7 billion, against EMHC's roughly $272 million.
- Investors who want only high-quality bonds: the index admits junk bonds, and Argentine government bonds were its largest holdings as of June 30, 2026.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| EMHC this fund | 11.2 yrs | 0.23% | $271.8M | -0.6% | +9.2% |
| GEMD Goldman Sachs Access Emerging Markets USD B… | 11.2 yrs | 0.3% | $35.5M | -0.8% | +8.9% |
| VWOB Vanguard Emerging Markets Government Bond E… | 11.2 yrs | 0.15% | $6.68B | -0.8% | +9.7% |
| EMB iShares J.P. Morgan USD Emerging Markets Bo… | 11 yrs | 0.39% | $14.61B | 0.0% | +9.0% |
| JPMB JPMorgan USD Emerging Markets Sovereign Bon… | 10.9 yrs | 0.39% | $95.1M | -0.4% | +8.5% |
| EMBD Global X Emerging Markets Bond ETF | 9.2 yrs | 0.39% | $248.4M | +0.3% | +9.8% |
| EBND SPDR Bloomberg Emerging Markets Local Bond … | 8.8 yrs | 0.3% | $2.26B | +2.1% | +7.7% |
| BNDX Vanguard Total International Bond ETF | 8.7 yrs | 0.07% | $122.53B | -0.6% | +4.1% |
Questions investors ask
Does EMHC pay monthly dividends?
Yes. EMHC pays income monthly. Over the 12 months to October 27, 2026, it paid about $1.53 per share, a trailing yield of 6.34%. The payments come from interest on the fund's bonds, so they are not fixed. The prospectus warns that income can fall if interest rates drop or if issuers repay bonds early and the fund has to reinvest at lower rates.
What's the difference between EMHC and VWOB?
They are close cousins. Both hold US dollar bonds from emerging-market governments, and both had an average maturity of 11.2 years. VWOB is cheaper, at 0.15% against EMHC's 0.23%, and much larger, with about $6.7 billion in net assets as of July 31, 2026, against EMHC's roughly $272 million as of June 30, 2026. As of October 27, 2026, their returns were similar: about 9.7% a year over three years for VWOB and 9.2% for EMHC.
Is EMHC a junk bond fund?
Not entirely, but it does hold junk bonds. Its index accepts bonds of any credit quality, so it mixes higher-rated borrowers such as Qatar and Kuwait with lower-rated ones such as Argentina and Ecuador. Four Argentine government bonds were the fund's largest holdings as of June 30, 2026, together about 4.4% of assets. Junk bonds pay more interest because their risk of default is higher. If a government restructures its debt, the fund's value could drop sharply.
How much did EMHC lose in 2022?
EMHC returned -17.19% in 2022, according to its prospectus. That is its worst calendar year since it launched in April 2021. Its worst quarter was the one ending June 30, 2022, at -11.18%. From its September 2021 peak to its October 2022 low, it fell 28%, and it did not regain that peak until September 2025. Bond prices fall when interest rates rise, and longer-dated bonds like these fall more.
What is EMHC's expense ratio?
EMHC's expense ratio is 0.23%, according to the prospectus filed October 26, 2026. Under the SEC's standard example, a $10,000 investment earning 5% a year would cost about $24 after one year, $74 after three, $130 after five and $293 after ten. That ranks third-lowest among eight similar funds and is below their 0.28% average. VWOB costs 0.15%, while EMB and JPMB each charge 0.39%.