Along with a core emerging market position, investors may consider augmenting their developing economy exposure with something like the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ).
“It is very heavy on technology… it targets the consumer. It is basically designed to see the growth of consuming middle classes in the emerging markets,” Dr. Burton Malkiel, Princeton Economist, said.
“It is probably the first satellite fund that I would recommend is that I think it is designed to capture exactly the kind of growth in emerging markets that I think will continue to occur,” Dr. Malkiel added.
EMQQ provides exposure to the growing emerging market consumer sector, notably those related to online retailers or the quickly expanding e-commerce industry.
To be included within the ETF’s underlying index, companies 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 as more than a billion people are expected to enter the consumer class in the coming decades.
Companies 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. Top holdings include Chinese names like Tencent, Alibaba and Ctrip.com, among others.
For more information on global markets, visit our global ETFs category.
Disclosure Information
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.
This information should not be relied upon by the reader as research or investment advice regarding the fund or any stock in particular. The opinions expressed may not be representative of experiences of other investors.
Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The fund is non-diversified. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Frontier markets generally have less developed capital markets than traditional emerging market countries, and, consequently, the risks of investing in foreign securities are magnified in such countries. These countries are subject to potentially significant political, social and economic instability, which could materially and adversely affect the companies in which the Fund may invest. The Fund invests in the securities of Internet Companies, including internet services companies and internet retailers, and is subject to risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund’s investments.
There is no guarantee that the Fund or the index will achieve its investment objective.
As of 08/22/19, EMQQ did not have any holding of Cisco.
