Amplify ETF Trust - Amplify Emerging Markets FinTech ETF (EMFQ)

Amplify Emerging Markets FinTech ETF (EMQQ): A Summary

Profile:

The Amplify Emerging Markets FinTech ETF (EMQQ) focuses on emerging market companies involved in the financial technology (FinTech) sector. It tracks the EMQQ Emerging Markets FinTech Index, which comprises companies with significant exposure to disruptive technologies in the financial services industry. These technologies include mobile payments, digital lending, blockchain, artificial intelligence, and wealth management.

Objective:

The primary objective of EMQQ is to provide long-term capital appreciation by investing in companies that are poised to benefit from the growth of the FinTech sector in emerging markets.

Issuer:

Amplify ETFs is a New York-based asset management firm specializing in thematic and sector-specific exchange-traded funds (ETFs). Amplify ETFs has a strong reputation for innovation and a commitment to providing investors with access to unique investment opportunities.

Market Share:

EMQQ is the largest and most liquid ETF focused on emerging market FinTech. Its market share within the FinTech ETF space is around 10%.

Total Net Assets:

EMQQ has approximately $500 million in assets under management.

Moat:

EMQQ's competitive advantages include:

• First-mover advantage: EMQQ was the first ETF to focus on emerging market FinTech, providing investors with a unique opportunity to access this growing sector.
• Experienced management team: The ETF is managed by a team of experienced professionals with a deep understanding of the FinTech industry and emerging markets.
• Transparent and rules-based methodology: The index methodology is transparent and rules-based, ensuring that the ETF's holdings are objective and unbiased.

Financial Performance:

Since its inception in 2018, EMQQ has delivered strong returns, outperforming the broader emerging market index. However, it is important to note that the ETF is still relatively young, and its long-term performance remains to be seen.

Growth Trajectory:

The FinTech sector in emerging markets is expected to experience significant growth in the coming years, driven by factors such as increasing smartphone penetration, rising middle-class populations, and growing demand for financial services. This positive outlook suggests strong potential for EMQQ's future growth.

Liquidity:

EMQQ has a high average trading volume, ensuring that investors can easily buy and sell shares without significant price impact. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

Several factors can affect the performance of EMQQ, including:

• Global economic growth: A strong global economy will typically benefit emerging markets, potentially boosting EMQQ's performance.
• Technological innovation: The pace of technological innovation in the FinTech sector will play a significant role in determining the growth of the companies held by EMQQ.
• Regulation: Government regulations can impact the FinTech industry in emerging markets, potentially affecting EMQQ's performance.

Competitors:

• KraneShares Emerging Markets Consumer Technology ETF (KEMQ)
• Global X Fintech ETF (FINX)
• iShares Global FinTech ETF (FNTE)

Expense Ratio:

EMQQ has an expense ratio of 0.75%.

Investment Approach and Strategy:

EMQQ is a passively managed ETF that tracks the EMQQ Emerging Markets FinTech Index. The index selects companies based on their exposure to the FinTech sector and their liquidity and market capitalization.

Key Points:

• First-mover advantage in the emerging market FinTech ETF space.
• Experienced management team.
• Strong track record of outperformance.
• High growth potential.
• Good liquidity.

Risks:

• Emerging market risk: Emerging markets can be more volatile than developed markets, potentially leading to increased price fluctuations for EMQQ.
• FinTech sector risk: The FinTech sector is still relatively young and evolving, and its future growth is uncertain.
• Concentration risk: EMQQ is concentrated in a few sectors and countries, which could increase its volatility.

Who Should Consider Investing:

EMQQ is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Believe in the long-term growth potential of the FinTech sector in emerging markets.

Fundamental Rating Based on AI:

8/10. EMQQ has strong fundamentals, including a first-mover advantage, experienced management, and a strong track record of performance. However, it is important to note the risks associated with emerging markets and the FinTech sector.

Resources and Disclaimers:

• Amplify ETFs website: https://amplifye.com/insights/etfs/emerging-markets-fintech/
• Morningstar: https://www.morningstar.com/etfs/arcx/emqq/quote
• Yahoo Finance: https://finance.yahoo.com/quote/EMQQ/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.