EMQQ The Emerging Markets Internet & Ecommerce ETF (EMQQ)

Overview

EMQQ The Emerging Markets Internet & Ecommerce ETF provides exposure to the internet and e-commerce sectors within emerging markets. It aims to capitalize on the growth potential of these rapidly developing economies by focusing on companies involved in online retail, internet services, and related technologies.

Reputation and Reliability

EMQQ is issued by Emerging Global Shares, a firm with a track record in developing market ETFs. They are generally considered a reliable issuer with expertise in the emerging markets space.

Management Expertise

The management team has experience in emerging market investing and ETF management, focusing on identifying and tracking companies poised to benefit from the growth of internet and e-commerce in these regions.

Goal

The primary investment goal of EMQQ is to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Emerging Markets Internet & Ecommerce Index.

Investment Approach and Strategy

Strategy: EMQQ aims to track the Emerging Markets Internet & Ecommerce Index, a benchmark designed to capture the performance of leading internet and e-commerce companies in emerging markets.

Composition The ETF holds stocks of companies primarily involved in internet and e-commerce activities within emerging markets. The specific holdings can vary based on index methodology.

Market Share: EMQQ holds a moderate market share within the emerging markets internet ETF space.

Total Net Assets (AUM): 497000000

Key Competitors

• KWEB
• CHIQ
• FXI

Competitive Landscape

The competitive landscape includes larger ETFs like KWEB that focus on Chinese internet companies, and other emerging market ETFs. EMQQ benefits from its broader emerging market exposure, but is smaller and may have higher tracking error than more focused ETFs. KWEB, while concentrated, may be favored due to China's dominance in the sector.

Historical Performance: Historical performance varies with the performance of emerging market internet stocks; past performance is not indicative of future returns.

Benchmark Comparison: The ETF's performance should be compared to the Emerging Markets Internet & Ecommerce Index to gauge its tracking efficiency.

Expense Ratio: 0.86

Average Trading Volume

EMQQ's average trading volume indicates moderate liquidity, typically sufficient for most investors.

Bid-Ask Spread

The bid-ask spread is typically moderate, reflecting its trading volume and liquidity.

Market Environment Factors

Economic growth in emerging markets, increasing internet penetration, e-commerce adoption rates, and regulatory environments significantly impact EMQQ.

Growth Trajectory

EMQQ's growth trajectory is tied to the expansion of the internet and e-commerce sectors in emerging markets, with potential for increased holdings in fast-growing companies.

Competitive Edge

EMQQ's competitive edge lies in its targeted focus on internet and e-commerce within emerging markets, providing specific exposure to these high-growth sectors. It avoids over-concentration in any single country by diversifying across multiple emerging economies, thus potentially mitigating geopolitical risks. The ETF's methodology provides for relatively balanced exposure within the chosen sector. Its focus differentiates it from broad-based emerging market ETFs.

Volatility

EMQQ exhibits volatility typical of emerging market equities, which can be higher than developed markets.

Market Risk

Market risk includes fluctuations in emerging market currencies, geopolitical instability, regulatory changes, and economic downturns affecting the underlying companies.

Ideal Investor Profile

The ideal investor is someone with a high risk tolerance seeking long-term growth potential in emerging market internet and e-commerce sectors. Investors looking to capitalize on the increasing internet adoption and e-commerce growth in emerging economies will also be interested.

Market Risk

EMQQ is suitable for long-term investors seeking growth, and those comfortable with higher levels of volatility inherent in emerging markets.

EMQQ offers targeted exposure to the fast-growing internet and e-commerce sectors within emerging markets, making it suitable for investors seeking long-term growth. Its performance is closely tied to the economic conditions and regulatory environments of these developing nations. While offering potential high returns, EMQQ also carries inherent risks, including currency fluctuations and political instability. Investors should carefully consider their risk tolerance and investment objectives before investing. Its moderate expense ratio should also be considered relative to potential returns.

Data Sources:

• ETF issuer website
• Bloomberg
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investing in ETFs involves risk, including the potential loss of principal.