Billions of consumers in Emerging Markets have begun to go online for the first time with low-cost smartphones and mobile broadband connections. This trend, combined with a global pandemic forcing a more digitized lifestyle, has resulted in a perfect storm that’s accelerated e-commerce adoption and growth globally.
In the upcoming webcast, The Future of Emerging Markets & The Accelerating Digital Revolution, Kevin Carter, Founder and CEO, EMQQ, will explore the impacts of this digital consumer wave in emerging markets and the companies best positioned to benefit from these permanent shifts in consumer behavior.
Specifically, ETF investors can gain targeted exposure to the consumer spending potential of a rising middle class in the expanding emerging markets through the Emerging Markets Internet & Ecommerce ETF (NYSEArca: EMQQ). EMQQ focuses on the growing emerging market consumer sector, notably those related to online retailers or the quickly expanding e-commerce industry.
The Emerging Markets Internet & Ecommerce ETF tries to reflect the performance of the EMQQ Index, which includes companies that 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 avoids the gaps that traditional index methodologies produce by requiring that its constituents derive at least half of their revenue from Ecommerce in emerging or frontier markets. In other words, EMQQ is agnostic when it comes to exchange listing or company domicile; as long as a company generates more than half of its revenue in emerging markets, it is eligible for consideration for inclusion in the index,” according to EMQQ.
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.
The ETF’s portfolio includes many prominent emerging market names, including Tencent, Alibaba, Naspers, MercadoLibre, Prosus, Meituan Dianping, JD.com, PinDuoDuo, Naver, and Netease, among others.
Financial advisors who are interested in learning more about investing in emerging markets and the digital revolution can register for the Tuesday, May 5, webcast here.