“If we were to really start a trade, it is proverbial cutting off your nose to spite your face,” Kerschner said.
Among Columbia Threadneedle’s emerging market ETF suite, investors may find a focus on consumer-related strategies, including the Columbia India Consumer ETF (NYSEArca: INCO), Columbia Emerging Markets Consumer ETF (NYSEArca: ECON) and the Columbia Emerging Markets Domestic Demand ETF (NYSEArca: EMDD). Kerschner pointed out that among the growth opportunities offered by the emerging markets, we see that there are three billion potential consumers.
Most investors may rely on benchmark emerging market index exposure, like the MSCI Emerging Markets Index, which only provides 15 to 20 percent consumer weights. “You’re not getting a consumer focus,” Kerschner said.
“If you want to invest in the emerging markets because this is going to be the fastest growing economy in the world and it’s growing because – largely going forward – of this new consumer economy, then focus on stocks that are in emerging market that sells to the consumer sector,” Kerschner added.
INCO provides targeted exposure to India’s consumer sector, including automobiles, personal products, auto components, food products, textiles apparel & luxury goods, media, tobacco, beverages and household products.
ECON allows access to consumer discretionary and consumer staples across the broader emerging market groups, including South Africa, China, India, Mexico, Brazil, Thailand, Russia, Indonesia, Chile, Philippines and Malaysia.
Lastly, EMDD only includes emerging market companies tied to domestic demand, specifically those in consumer staples, consumer discretionary, telecom, healthcare and utilities.