The issuer of the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ) and the Next Frontier Internet & Ecommerce ETF (FMQQ) has rebranded the company as EMQQ Global. EMQQ Global’s founder and CIO Kevin T. Carter said in an email to investors that the company is doing this to better represent its expanded holdings and wider reach in the growing emerging markets space.
“We launched EMQQ in 2014 to help investors capture the unique opportunities in fast-growing Internet and Ecommerce companies in Emerging and Frontier Markets,” wrote Carter. “At the time, there were 42 publicly traded Emerging Markets Internet companies … Since then, the number of Emerging Markets Internet companies has tripled to 131.”
Carter also noted that while smartphone and internet penetration were 24% and 39% globally in 2014, respectively, they’re now 58% and 63%.
When EMQQ first launched, most of the publicly traded emerging markets internet companies were from China. Now, the emerging markets specialist has holdings in India, Brazil, Indonesia, Nigeria, Argentina, Egypt, Uruguay, and Kazakhstan.
“In addition to the geographic expansion of our holdings, EMQQ also now licenses the index to trade in London, Milan and Frankfurt, with plans for a Hong Kong listing later this year,” Carter added.
The company also recently launched its first single country index, INQQ: The India Internet + Ecommerce Index, which is designed to capture the growth of online consumption and digitalizing lifestyles in India.
EMQQ Global’s chief marketing officer Lee G. Stapleton confirmed that the ETFs, their tickers, and indexes will remain the same.
EMQQ tracks an index of leading internet and e-commerce companies serving emerging markets. It seeks to offer investors exposure to the growth of online consumption in the developing world. EMQQ holdings operate in diverse markets such as India, China, Brazil, Turkey, Nigeria, and Indonesia, to name a few. To be included, the companies must derive their profits from e-commerce or internet activities and include search engines, online retail, social networking, online video, e-payments, online gaming, or online travel.
FMQQ provides investors targeted exposure to the non-Chinese companies in EMQQ. It 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 (FMQQetf.com). All securities must have more than $300 million in market cap and have more than 50% of their revenues come from internet and/or e-commerce businesses in emerging and frontier markets (excluding China). The fund rebalances semi-annually.
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