An Emerging Market ETF Strategy That's Here To Stay | ETF Trends

The U.S.-China trade war may be grabbing headlines now, but is still only short-term noise that will eventually clear up.

“Tariffs are almost universally considered to be a tax by economists, and I remember the algebra of tariffs when I was studying economics. Our government understands that going ahead with the tariffs the way discussed is probably a bad idea, and then, it’s just a negotiating tactic,” Kevin Carter, Chief Investment Officer for EMQQ, said.

Carter pointed out that the trade tariffs are largely centered around finished goods and agricultural products that are exchanged between the U.S. and China.

On the other hand, investors can still capture an opportunity through an investment strategy that capitalizes on the changing consumer habits found within the emerging markets. ETF investors can tap into the consumer spending potential of the rising middle class in the growing emerging markets through the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ). EMQQ provides exposure to the growing emerging market consumer sector, notably those related to online retailers and the quickly expanding e-commerce industry.

“We’re not really affected fundamentally by what’s happening, but obviously, the stock market and fundamentals are not the same,” Carter said.

To be included within EMQQ’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.

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