Developing economies have been known for their rapid growth relative to the more established developed markets, with the rising middle-income EM consumer expected to fuel the growth. Investors can also utilize a targeted exchange traded fund to gain exposure to this rising consumer base.
On the upcoming webcast, A Billion New Consumers in Emerging Markets, Kevin Carter, Founder of EMQQ Index, and David Gatti, Chief Executive Officer, Chief Investment Officer and Founding Partner of RPg Family Wealth Advisory, will delve into the greater influence of emerging market consumers, their preference for online shopping via the smartphone and ways for investors to gain targeted exposure to the rapidly expanding e-commerce segment.
ETF investors can gain exposure to this targeted emerging market segment through the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ), which focuses on internet names, notably those that cater toward online shopping or e-commerce.
The internet and e-commerce ETF tries to reflect the performance of the EMQQ The Emerging Markets Internet & Ecommerce index, which includes companies that derive profits from e-commerce or internet activities, including search engines, online retail, social networking, online video, e-payments, online gaming and online travel.
“It seeks to offer investors exposure to the growth of online consumption in the developing world,” according to EMQQ ETF. “EMQQ holdings operate in diverse markets such as India, China, Brazil, Turkey, Nigeria and Indonesia, to name a few.”
EMQQ includes exposure to the growth of online consumption in the developing world. Specifically, the ETF includes large internet names like Tencent Holding 8.2%, Naspers 7.5%, Alibaba Group 7.4%, Mercadolibre 6.3% and CTrip.com International 5.7%.
Supporting the outlook for emerging market online retailers, the widespread usage of digital devices and increased reliance on the internet have all helped consumers around the world easily access anything with a touch of a button.
“The transformative effects of the Internet are making themselves felt more strongly than ever before in emerging markets as fledgling middle classes expand and discretionary incomes rise,” according to EMQQ ETF. “The plunging costs of smartphones and wireless broadband are providing unprecedentedly large swaths of the population in developing countries with access to the Internet for the first time, both in rural and urban areas.”
Financial advisors who are interested in learning more about the emerging market consumer industry can register for the Tuesday, May 16 webcast here.