The digitization of the developing world is now reaching an inflection point. The unique innovation born in Silicon Valley has spread, been adapted, and now reached maturity where unicorns from all corners of the developing world are going public.
In the upcoming webcast, Emerging Markets 2022 Outlook & The Coming IPO Wave, Kevin T. Carter, founder and CIO of the Emerging Markets Internet Ecommerce ETF (EMQQ) and the Next Frontier Internet & Ecommerce ETF (FMQQ), will delve into these new names, the fundamental changes taking place in developing economies, preference for online shopping via the smartphone, and how Gen Z will drive the next leg of this growing digital revolution.
Specifically, the recently launched Next Frontier Internet & Ecommerce ETF (FMQQ) is designed to provide investors with exposure to the internet and e-commerce sectors of the developing world.
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 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.
As noted, FMQQ goes beyond China and taps into innovative companies growing and going public at a fast rate in other parts of Asia, South America, Africa, and Eastern Europe. This fund is taking a cue from the founder of the Emerging Markets Internet & Ecommerce ETF (EMQQ), which is heavily tilted toward Chinese markets.
EMQQ focuses on the growing emerging market consumer sector, particularly facets related to online retailers and the quickly expanding e-commerce industry.
EMQQ 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, including search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.
The ETF’s portfolio includes many prominent emerging market names, including Tencent, Alibaba, Meituan, Naspers, JD.com, PinDuoDuo, Netease, MercadoLibre, Prosus, and Sea LTD, among others.
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. More than one billion people are expected to enter the consumer class in the coming decades.
Financial advisors who are interested in learning more about emerging and frontier markets can register for the Thursday, December 16 webcast here.