EMQQ is the first UCITS ETF in Europe to launch via an independent white-label ETF platform and this breakthrough could pose a major turning point in the history of European ETFs, expanding access to an industry with high barriers to entry. This follows the path of the US ETF industry where asset managers using a white label platform to launch ETFs has become commonplace.
EMQQ seeks to provide investment results that correspond generally to the price and yield performance of EMQQ The Emerging Markets Internet & Ecommerce IndexTM. EMQQ invests in securities of the index or in depositary receipts representing securities of the index, which is designed to measure the performance of an investable universe of publicly-traded, emerging market internet and ecommerce companies.
Kevin Carter, CEO of Big Tree Capital, Founder and Chairman of EMQQ Index Committee said: “We are excited to be launching EMQQ in Europe with HANetf. Their experience, knowledge of the market and entrepreneurial spirit make them the ideal partner for us or anyone else looking to enter the European ETF market. We believe that European investors will benefit from gaining pure exposure to the fast growing and innovative Internet companies in Emerging Markets which we believe is the best way to access the growth of the digital consumers in this large and important part of the world.”
Furthermore, the index that EMQQ tracks contains over 50 constituents, including Alibaba, Tencent and Baidu, weighted according to a modified market-capitalization methodology with individual constituents capped at 8%. The ETF mirrors a highly successful US listed version of the product that has garnered over $365,000,000 in assets to date.
The fund lists on London Stock Exchange (Ticker EMQQ) with a TER of 86 bps. The opening share price of $8.88 was chosen specifically for the triply auspicious connotations in Chinese numerology.
“The first launch via the HANetf platform is a significant milestone for our team, but also a watershed moment for every asset manager wanting to evolve their European ETF strategy,” said McNeil. “With this launch, HANetf has single-handedly removed the high barriers to creating and launching ETFs in Europe, opening the gates for more asset managers – traditional, systematic or active – to benefit from the powerful distribution potential of ETFs. With a tremendously successful fund in North America, the EMQQ team have been keen to expand their distribution potential and we are delighted to have worked with them over to bring this proven idea to Europe.”
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