Global X Emerging Markets Bond ETF (EMBD US) – Portfolio Construction Methodology

The investment framework guiding the actively managed Global X Emerging Markets Bond ETF directs exposure across sovereign, quasi-sovereign, and corporate debt from emerging markets, with ≥80% of net assets normally in EM debt (directly or indirectly). Eligible countries follow common EM classifications used in major sovereign/corporate bond universes, and single-country concentration is capped; the portfolio primarily holds U.S.-dollar-denominated EM bonds but may allocate to local-currency issues where risk-adjusted carry and liquidity justify. Country weights reflect top-down macro views on growth, external balances, policy, and terms of trade; security selection applies bottom-up valuation and issue-structure work (seniority, covenants, call features). Quality spans investment grade and high yield. Cash, U.S. Treasuries, and other developed-market instruments (≤~20%) support liquidity management. Sells/ trims occur on overvaluation, credit deterioration, technical dislocations, or better risk-reward elsewhere.

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