The global market pullback has revealed opportunities for long-term investors to capture emerging market growth at a cheaper entry point.
In the upcoming webcast, The Next Big Growth Story: Finding Opportunities In Emerging Markets, Kevin T. Carter, founder and CIO of EMQQ Global, will explore the positive signals that support the case for the emerging markets and highlight how the rising middle-income consumer class in the developing economies could create staggering growth.
To help investors target these emerging opportunities, the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ) includes access to EM companies related to online retailers and the quickly expanding e-commerce industry. To be included within the ETF’s underlying index, companies must derive most of their profits from e-commerce or internet activities like search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.
“EMQQ seeks to offer investors exposure to the growth in Internet and Ecommerce activities in the developing world as middle classes expand and affordable smartphones provide unprecedentedly large swaths of the population with access to the Internet for the first time,” according to EMQQ ETF.
Investors can also consider the Next Frontier Internet & Ecommerce ETF (FMQQ) to capture these favorable trends in the so-called frontier markets. FMQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the Next Frontier Internet and Ecommerce Index. All securities must have more than $300 million in market cap and have more than 50% of their revenue come from the internet and/or e-commerce businesses in emerging and frontier markets (excluding China). The fund will cap each weighting at 8% and rebalance semi-annually.
“Many investors believe that the growth of consumption in frontier and emerging markets represents a significant growth opportunity as more than one billion people are expected to enter the consumer class in the coming decades,” according to FMQQ ETF. “Increasingly, these consumers are using cheap smartphones and affordable broadband mobile connections to access the Internet, opening a world of discovery and wonder.”
Additionally, investors can focus on the vast consumer base in India through the more recently launched India Internet and Ecommerce ETF (INQQ), which follows the India Internet and Ecommerce Index and holds about 20 stocks. The India Internet and Ecommerce ETF could be an ideal way to capitalize on India’s favorable demographic trends as well.
“Armed with 27% of the world’s Gen -Z population, a middle class set to double by 2030, and 25 million new smartphone users added every quarter, the stage is set for the country to enter a golden age of digitization,” according to INQQ ETF.
Financial advisors who are interested in learning more about emerging markets can register for the Wednesday, September 28 webcast here.