An ETF for the Emerging-Markets Turn

In the last couple of months, many foreign assets have been marked down as the dollar has rallied. Whether that's a snapback or otherwise, the dollar rebound doesn't change the importance of foreign diversification for long-term investors, which includes fixed-income products.

The PowerShares Emerging Markets Sovereign Debt Portfolio (PCY Quote), listed last October, has behaved exactly as you might think. It has not been terribly volatile, but it has turned down some as the emerging equity markets have rolled over in recent months.

The paper the fund holds is dollar-denominated, so the greenback's move hasn't led directly to the decline. However, the price has pulled back as capital has been rotating out of emerging-market assets. In terms of delivering as-advertised exposure, the fund is worth a look. ...