Investors piling into EM debt tracker exposed to Venezuela

Investors piling into a Legal & General tracker fund are earning yields highly exposed to Venezuelan debt highlighting the risks of passive products when investing in emerging market bonds. According to FE data, the £812.5m L&G Emerging Markets Government Bond hard currency index has 3.3 per cent in the emerging market country, which has seen violent clashes over the summer as its starving population revolts against Hugo Chavez’s successor Nicolas Maduro. More…