iShares J.P. Morgan EM Local Currency Bond ETF

The iShares J.P. Morgan EM Local Currency Bond ETF (LEMB) tracks a J.P. Morgan index of government bonds from emerging market countries such as China, India and Mexico. The bonds are priced in each country's own currency, not US dollars. So its returns depend heavily on how those currencies move against the dollar. At 0.30% a year, it costs more than many plain bond ETFs. Its deepest drop was 28.2%.

• Over the year to Oct 27, 2026, LEMB returned +3.8%, 2nd of 8 among similar funds.
• Its 5-year annualized return was +1.7% and its 10-year +1.3%.
• In the 2020 COVID crash it fell 19.3% and regained its old high 7.9 months after the low.
• Its worst full calendar year was 2015 (-12.1%); its best was 2025 (+18.0%).
• The deepest fall in its price history was 28.2% (May 8, 2013 to Oct 20, 2022), recovered by Jan 27, 2026.

As of Jul 31, 2026, the fund held 486 securities; the ten largest made up 11.36% of assets.

The bonds mature in 7.5 years on average (weighted by size), with an average coupon of 6.42%.

• Over the three months to Jul 31, 2026, investors withdrew a net $25.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.85%, +0.62%, +0.51%.

LEMB tracks the J.P. Morgan GBI-EM Global Diversified 15% Cap 4% Floor Index. The index holds government bonds that emerging market countries issue in their own currencies. J.P. Morgan decides which countries count as emerging, using income measures over three straight years. Each country's weight is capped at 15% and floored at 4%. That keeps the largest markets from dominating and gives smaller ones a meaningful share. As of October 31, 2025, the index ranged from Brazil, China and India to Serbia, Turkey and Uruguay.

Bonds have to meet size and maturity rules. Onshore bonds need at least $1 billion outstanding, and global bonds need $500 million. A bond must have at least 2.5 years left to maturity when it enters the index. It is dropped once fewer than 6 months remain. Floating-rate bonds and bonds with call, put or conversion features are excluded. The index rebalances on the last weekday of each month.

BlackRock uses "representative sampling." That means it holds a selection of bonds that together behave like the index, rather than every bond in it. At least 80% of assets must be in index bonds. Up to 10% can go into futures, options, swaps or other bonds. As of July 31, 2026, the fund held 486 holdings and no derivatives. The average maturity was 7.5 years. Because the fund's value is counted in dollars, a weaker local currency lowers it.

• LEMB charges 0.3% a year, versus an average of 0.1% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).

Its emerging market currency and interest rate exposure can broaden a bond allocation, but its losses of nearly 20% and slow recoveries make it better suited to a small position than a core one.

LEMB adds exposure to foreign interest rates and currencies that US bond funds lack. But it has not cushioned stock market crashes. It fell 19.3% in the 2020 COVID crash and took about 8 months to recover. It fell 19.7% in 2022 and needed about 31.5 months to recover. Its deepest drop was 28.2%, from May 2013 to October 2022, and it did not fully recover until January 2026. Its worst calendar year was 2015, down 12.1%. Anyone who had to sell shares during those stretches would have locked in losses. The trailing 12-month yield was 2.43% as of October 27, 2026. The fund pays once a year, so the income comes in lumps. Under the SEC's standard example, costs on $10,000 come to $31 after one year and $381 after ten. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).