An ETF To Tap Into the Growing Emerging Market Consumer

EMQQ includes exposure to the growth of online consumption in the developing world. Specifically, the ETF includes large internet names like Alibaba Group Holdings 9.3%, Tencent Holdings 8.3%, Naspers TLD 7.2%, Naver Corp 6.3% and Baidu Inc. 6.2%. The fund also has diverse country exposure, including India, China, Brazil, Turkey, Nigeria and Indonesia.

The e-commerce ETF will provide exposure to a growing consumer base. According to EMQQ, the consumer class will sell to 4.2 billion people by 2025, with consumption in the developing countries accounting for $30 trillion or almost half the global total.

Consequently, investors may find attractive revenue growth and value creation through the rising e-commerce segment.

“The revenue of the companies in EMQQ grew from $13 billion in 2009 to $73.8 billion in 2014—a total 5 year growth of 468% and an average annual growth rate of 41.5%,” according to EMQQ. “And while the rate of revenue growth is likely to slow over time, it was still an impressive 39.9% in 2014.”

Financial advisors who are interested in learning more about the emerging markets can register for the Tuesday, September 27 webcast here.