ETF Trends
ETF Trends

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.

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