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, focusing on companies benefiting from the increasing adoption of online services and digital consumption in these regions. It aims to capture the growth potential of the emerging market internet economy. The ETF primarily invests in publicly listed stocks.

Reputation and Reliability

EMQQ is issued by Emerging Global Shares, a provider of thematic ETFs focused on emerging markets. They have a solid reputation for developing specialized and targeted investment products.

Management Expertise

The management team has expertise in emerging markets investing and a track record of managing thematic ETFs. Their focus on specific sectors within emerging markets demonstrates a specialized approach.

Goal

The primary investment goal of EMQQ is to track the performance of the Emerging Markets Internet & Ecommerce Index, offering investors exposure to the growth of internet and e-commerce companies in emerging markets.

Investment Approach and Strategy

Strategy: EMQQ aims to replicate the performance of the Emerging Markets Internet & Ecommerce Index, which includes companies deriving a significant portion of their revenue from internet and e-commerce activities in emerging markets.

Composition The ETF primarily holds stocks of publicly listed companies involved in internet retail, online gaming, social media, e-commerce platforms, and other internet-related businesses within emerging markets. The composition is weighted based on market capitalization with certain diversification rules applied.

Market Share: EMQQ holds a notable market share among ETFs focusing on emerging market internet and e-commerce companies.

Total Net Assets (AUM): 388594394

Key Competitors

• KWEB
• CQQQ
• FXI

Competitive Landscape

The competitive landscape is characterized by several ETFs targeting emerging market internet and technology sectors. EMQQ differentiates itself by focusing specifically on internet and e-commerce, offering a more targeted exposure. KWEB has a larger market share, but is heavily focused on China. EMQQ's broader emerging market exposure can be an advantage or disadvantage depending on investor's market outlook.

Historical Performance: Historical performance data should be reviewed over various time periods (1yr, 3yr, 5yr, 10yr, since inception) to assess the ETF's returns, volatility, and risk-adjusted performance.

Benchmark Comparison: The ETFu2019s performance should be compared against the Emerging Markets Internet & Ecommerce Index to evaluate tracking accuracy.

Expense Ratio: 0.86

Average Trading Volume

EMQQ exhibits moderate liquidity with an average trading volume of around 100,000 shares, depending on market conditions.

Bid-Ask Spread

The bid-ask spread typically ranges from 0.05% to 0.10%, depending on market volatility and trading volume.

Market Environment Factors

Economic indicators like GDP growth in emerging markets, increasing internet penetration rates, rising disposable incomes, and consumer spending trends significantly impact EMQQ. Regulatory changes and geopolitical events also play a role.

Growth Trajectory

The growth trajectory of EMQQ is tied to the expansion of the internet and e-commerce sectors in emerging markets. Changes to the fund's strategy and holdings reflect adjustments to capture evolving trends within the sector.

Competitive Edge

EMQQ's competitive edge lies in its targeted exposure to the high-growth internet and e-commerce sectors within emerging markets. This focus allows investors to capitalize on the increasing digital adoption and online consumption trends in these regions. Unlike broader emerging market ETFs, EMQQ provides a specific and thematic investment approach. The ETF's expense ratio is slightly higher than some competitors, which could be a disadvantage.

Volatility

EMQQ's volatility is generally higher than that of developed market ETFs due to the inherent risks associated with emerging markets and the technology sector.

Market Risk

Specific risks include regulatory risks in emerging markets, currency fluctuations, geopolitical instability, and competition within the internet and e-commerce sectors. Changes in technology and consumer preferences also pose risks.

Ideal Investor Profile

The ideal investor for EMQQ is someone with a moderate to high risk tolerance seeking growth potential in emerging markets. They should be comfortable with the volatility associated with emerging market equities and the technology sector.

Market Risk

EMQQ is best suited for long-term investors who believe in the growth potential of the emerging market internet and e-commerce sectors. It may not be suitable for risk-averse investors or those seeking stable income.

EMQQ The Emerging Markets Internet & Ecommerce ETF offers a targeted approach to capture the growth of internet and e-commerce in emerging markets. Its focus on this specific sector provides investors with unique exposure. While it comes with risks associated with emerging markets and tech sector volatility, its potential for high growth makes it suitable for investors with higher risk tolerance seeking long-term capital appreciation. Its expense ratio and fund holdings should be considered before investing.

• KWEB
• ASHR
• MCHI
• PGJ

Data Sources:

• ETF.com
• Morningstar
• Issuer's Website

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.