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.
“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.
Financial advisors who are interested in learning more about the emerging markets can register for the Tuesday, November 27 webcast here.