Investors can turn to targeted exchange traded fund strategies to tap into the potential growth opportunities in developing economies. In the upcoming webcast, Burton Malkiel on Emerging Markets: The Next Decade of Global Growth & How to Capture It, Dr. Burton G. Malkiel, EMQQ Global advisor and FMQQ Index Committee Member, Princeton Economist, and author of A Random Walk Down Wall Street; and Kevin T. Carter, founder and CIO of EMQQ Global, will highlight the positive trends that will support developing economies and outline a focused EM strategy to help financial advisors’ clients capture these overseas opportunities.
As a way to target these emerging opportunities, investors can turn to the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ), which 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 is designed to provide investors with exposure to the internet and e-commerce 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,” according to EMQQ ETF.
In addition, investors can 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.
Financial advisors who are interested in learning more about developing economies can register for the Friday, October 21 webcast here.