At a time when investors are delving more deeply into the emerging markets space, particularly into bond funds, two dollar-denominated emerging markets ETFs are clearly outperforming other fixed-income funds canvassing the space, according to an article on ETF Trends.

Indeed, the two funds—the iShares JP Morgan USD Emerging Markets Bond Fund (NYSEArca: EMB) and the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSEArca: PCY)—are leading the pack because the dollar is on a clear uptrend against a variety of currencies in an environment of weakening global growth.

The two ETFs don’t hedge their currency exposure, so when investors pile into dollar-denominated assets such as U.S. Treasurys, investments such as EMB and PCY benefit as well, the article said.

Currency fluctuations as a growing driver of returns for emerging markets bond funds is a subject IndexUniverse ETF Analyst Paul Britt took up at length in a recent blog.

Go to ETFtrends.com to learn more about EMB and PCY.