The developing economies are witnessing an increasing group of middle-income consumers who have become reliant on digital devices in the COVID-19 world. With a global pandemic forcing a more digitized lifestyle, we have witnessed an increased adoption of e-commerce or online shopping to meet everyday needs.
In the upcoming webcast, E-Commerce and Coronavirus: A Boon for Emerging Markets, Kevin Carter, Founder and CEO, EMQQ, will explore the impacts of a growing digital consumer class in emerging markets and the companies best positioned to benefit from this shift in consumer behavior.
ETF investors can gain targeted exposure to the consumer spending potential of a rising middle class in the expanding emerging markets through the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ). EMQQ focuses on the growing emerging market consumer sector, notably facets related to online retailers and the quickly expanding e-commerce industry.
The Emerging Markets Internet & Ecommerce ETF tries to reflect the performance of the EMQQ Index, which includes companies that must derive the majority of their profits from E-commerce or Internet activities and further includes search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.
EMQQ primarily focuses on the internet and e-commerce sectors of the developing world, helping investors capitalize on the growth of consumption in emerging markets, which represents a significant growth opportunity. More than a billion people are expected to enter the consumer class in the coming decades.
“Any investment professional that has spent even a small amount of time studying Emerging Markets knows that the key growth story in the developing world is the emergence of the middle class consumer. There are numerous studies published by investment banks, consulting firms and fund companies showing us how literally billions of people in developing countries are just now entering the middle class and increasing their discretionary consumption seeking out more and better food, clothing, appliances, cars, educations etc. It’s a big story that is fundamentally changing economies across the globe and in rapid time,” according to an EMQQ note.
The ETF’s portfolio includes many prominent emerging market names, including Meituan Dianping, Tencent, Alibaba, Naspers, MercadoLibre, Prosus, JD.com, PinDuoDuo, Naver, Baidu, and Netease, among others.
Financial advisors who are interested in learning more about e-commerce in the emerging markets can register for the Monday, December 7 webcast here.