Many have overlooked the developing markets, especially the growth potential of the growing consumption base, but investors can find exposure to this quickly expanding emerging consumer segment of the global market through a targeted exchange traded fund.
On the recent webcast, A Billion New Consumers in Emerging Markets, Kevin Carter, Founder of EMQQ Index, argued that investors would be negligent in ignoring the growth found in emerging market exposure. For instance, emerging markets provide diversification benefits as they exhibit low correlation to developed markets. Developing countries are also home to 85% of the global population, with a much larger younger demographic, 50% of global GDP and a much faster growth rate.
The growth of emerging consumption is also a very big deal, Carter added. By 2025, the consuming class will increase to 4.2 billion people, and consumption in emerging markets will make up $30 trillion, or nearly half of the global total.