An Otherwise Disastrous 2020 Has Been Great for EMQQ

The coronavirus pandemic is driving increased adoption of e-commerce and as the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ) proves, that theme is not confined to the U.S.

EMQQ includes access to EM companies related to online retailers or the quickly expanding e-commerce industry. To be included within the ETF’s underlying index, companies must derive the majority of their profits from E-commerce or Internet activities including search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.

EMQQ YTD Performance

“The coronavirus pandemic is strengthening e-commerce in India, Indonesia, Mexico, and Nigeria, which already had factors like sizable populations, fast e-commerce growth rates, and a large number of digital buyers working in their favor,” according to Business Insider.

EMQQ: Right Place, Right Time

Internet and e-commerce based business models are receiving a slight boost, notably from an increase in demand for widely adapted e-commerce businesses. The shift in day-to-day habits from lockdown measures to contain the pandemic has accelerated the adaption of certain platforms, such as distance learning, telemedicine, and food delivery, among others.

“Now, lockdowns and concerns about visiting stores are accelerating these e-commerce markets’ development, illustrating how the pandemic is rapidly strengthening opportunities for e-commerce stakeholders around the world,” according to Business Insider. “Each of these countries experienced some form of lockdown in response to the coronavirus crisis, making e-commerce more appealing and necessary than ever.”

EMQQ, the first ETF to focus on the universe of internet and eCommerce innovators in some of the fastest-growing markets in the world, provides investors with exposure to the internet and eCommerce sectors of the developing world. Many investors believe that the growth of consumption in emerging markets represents a significant growth opportunity as more than one billion people are expected to enter the consumer class in the coming decades. Increasingly, these consumers are using smartphones and broadband mobile connections to access the internet.

“The sudden uptick in e-commerce shopping, both right now and in the years to come, is giving e-retailers more consumers to target than they would have without the pandemic, offering e-commerce players the chance to scale their operations more quickly than they might’ve planned,” said Business Insider.

For more alternative investing ideas, visit our Alternatives Channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.