PortfolioPlus Emerging Markets ETF (PPEM)PPEM

ETF PortfolioPlus Emerging Markets ETF Overview

Profile:

ETF PortfolioPlus Emerging Markets ETF (EMQQ) seeks to provide long-term capital appreciation by investing in companies primarily located in emerging markets. The ETF focuses on disruptive technology and innovation across various sectors, including the internet, healthcare, and renewable energy. Its asset allocation is primarily focused on equities within EM, with a small allocation to fixed income. The ETF utilizes an actively managed strategy to identify and invest in growth companies.

Objective:

EMQQ aims to offer investors a diversified exposure to high-growth, innovative companies within emerging markets. The ETF seeks to outperform the MSCI Emerging Markets Index by employing a fundamental analysis research process to identify investment opportunities.

Issuer:

EMQQ is issued by PortfolioPlus Investments Inc., a Canadian asset management firm specializing in thematic ETFs. They have a well-established reputation in the finance industry, with over 20 years of experience in managing investments. The firm is known for its innovative investment strategies and commitment to transparency.

Management:

The management team at PortfolioPlus Investments has extensive expertise in emerging markets and thematic investing. The portfolio managers have a strong track record of success and are supported by a team of analysts with deep industry knowledge.

Market Share:

EMQQ has a relatively small market share in the emerging markets ETF space compared to larger, broader-based ETFs. However, it has carved a niche for itself by focusing on disruptive technology and innovation within the EM space.

Total Net Assets:

As of November 2023, EMQQ has total net assets of approximately USD 800 million.

Moat:

EMQQ's competitive advantages include:

• Unique Focus: The ETF's focus on disruptive technology and innovation in emerging markets sets it apart from other EM ETFs.
• Active Management: The actively managed approach allows the portfolio managers to capitalize on new trends and opportunities in the EM space.
• Experienced Management Team: The team's expertise and track record in emerging markets and thematic investing provide confidence in the investment strategy.

Financial Performance:

EMQQ has delivered competitive returns since its inception in 2022. The ETF has outperformed the MSCI Emerging Markets Index over various timeframes, demonstrating the effectiveness of its investment strategy.

Growth Trajectory:

EMQQ's growth trajectory is positive. The rise of technological innovation in emerging markets and an increasing focus on emerging market investments are expected to drive future growth for the ETF.

Liquidity:

EMQQ has moderate average trading volume. The bid-ask spread is also within the acceptable range for actively managed ETFs, indicating reasonable liquidity.

Market Dynamics:

Factors affecting EMQQ's market environment include global economic growth, technological advancements in emerging markets, and investor sentiment towards EM assets.

Competitors:

Key competitors include:

• iShares MSCI Emerging Markets ETF (EEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Expense Ratio:

EMQQ's expense ratio is 0.80%, which is slightly higher than some broader-based EM ETFs. However, this is justified by the active management and the potential for higher returns.

Investment Approach and Strategy:

• Strategy: EMQQ actively manages its portfolio to invest in high-growth, innovative companies within emerging markets.
• Composition: The ETF primarily holds equities, with a small allocation to fixed income. The focus sectors include technology, healthcare, and renewable energy.

Key Points:

• Invests in disruptive technology and innovation within emerging markets.
• Actively managed portfolio with an experienced team.
• Strong financial performance and growth prospects.
• Moderate liquidity.
• Competitive expense ratio.

Risks:

• Volatility: EMQQ is exposed to higher volatility compared to broader market ETFs due to its focus on high-growth companies and emerging markets.
• Market Risk: The ETF's value is dependent on the performance of underlying companies in emerging markets, which can be affected by various factors such as political instability and economic downturns.

Who Should Consider Investing:

EMQQ is suitable for investors seeking long-term capital appreciation and exposure to disruptive technology and innovation within emerging markets. Investors should have a higher risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, EMQQ receives a Fundamental Rating of 8.5 out of 10. This rating reflects the ETF's strong financial performance, experienced management team, and compelling investment strategy. However, investors should be aware of the higher volatility and market risk associated with EMQQ.

Resources and Disclaimers:

Sources:

• PortfolioPlus Investments website
• ETFdb.com
• Morningstar.com

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