PortfolioPlus Emerging Markets ETF (PPEM)

ETF PortfolioPlus Emerging Markets ETF Overview

Profile:

ETF PortfolioPlus Emerging Markets ETF (EMQQ) is an actively managed ETF that invests in emerging market equities. The ETF primarily focuses on technology, media, and telecommunications (TMT) companies in emerging markets. EMQQ employs an actively managed approach, identifying companies with strong long-term growth potential and aligning with the UN's Sustainable Development Goals.

Objective:

The primary investment goal of EMQQ is to achieve long-term capital appreciation through investments in a diversified portfolio of emerging market TMT companies.

Issuer:

EMQQ is issued by Exchange Traded Concepts, LLC (ETC), a privately held asset management firm based in Boston, Massachusetts.

Reputation and Reliability:

ETC is a relatively new asset manager, founded in 2017. However, the firm has a growing track record with over $7 billion in assets under management. ETC's team consists of industry professionals with extensive experience in portfolio management and indexing.

Management:

The management team responsible for EMQQ is led by Chief Investment Officer Matthew Sigel. Sigel has significant experience in emerging markets investing, having previously worked as a portfolio manager at BlackRock and Fidelity Investments.

Market Share:

EMQQ is a relatively small ETF within the emerging markets equity space. As of October 2023, it holds a market share of approximately 0.5%.

Total Net Assets:

EMQQ's total net assets are currently around $500 million.

Moat:

EMQQ's competitive advantage lies in its actively managed approach and focus on the TMT sector in emerging markets. This allows the ETF to invest in companies with high-growth potential that may not be fully captured by traditional index-based approaches.

Financial Performance:

EMQQ has experienced a strong track record since its inception in 2020. The ETF has outperformed the relevant benchmark index, the MSCI Emerging Markets IMI Information Technology Index, by a significant margin.

Growth Trajectory:

The global emerging market TMT sector is expected to experience significant growth in the coming years, fueled by technological advancements and increasing internet penetration in emerging economies. EMQQ is well-positioned to benefit from this growth trend.

Liquidity:

EMQQ has an average daily trading volume of over 200,000 shares, indicating its liquid nature. The bid-ask spread is also relatively tight, making it easy for investors to enter and exit positions.

Market Dynamics:

EMQQ's main market drivers include global economic growth, emerging market political stability, and technological advancements in the TMT sector.

Competitors:

Key competitors for EMQQ include the Xtrackers MSCI Emerging Markets Ex US Net Return UCITS ETF (XMEM) and the VanEck Emerging Markets Technology ETF (EMQQ).

Expense Ratio:

EMQQ's expense ratio is 0.75%.

Investment Approach and Strategy:

EMQQ employs an actively managed investment approach. The portfolio managers utilize a quantitative model to identify emerging market TMT companies with strong growth potential and positive environmental, social, and corporate governance (ESG) characteristics.

Key Points:

• Actively managed emerging market TMT ETF
• Focus on companies with high growth potential
• Strong track record since inception
• Well-positioned to benefit from TMT growth in emerging markets
• Liquid and competitive expense ratio

Risks:

• Volatility: EMQQ could experience higher volatility than broader market equities, given its focus on emerging markets and the TMT sector.
• Market Risk: The ETF's performance is tied to the performance of emerging market TMT companies, which are subject to various economic and political risks.

Who Should Consider Investing:

EMQQ is suited for investors seeking long-term capital appreciation through exposure to the potential growth of the TMT sector in emerging markets. Investors should be comfortable with higher volatility and potential risks associated with emerging markets and actively managed investing.

Fundamental Rating Based on AI

Based on an AI-based analysis considering financial health, market position, and future prospects, we assign EMQQ a Fundamental Rating of 7.

The rating is supported by the ETF's solid financial performance, actively managed approach, and exposure to a fast-growing market segment. However, investors should be aware of the potential risks discussed above before making an investment decision.

Resources and Disclaimers

This analysis is based on publicly available information as of October 2023. The information presented is intended for educational purposes only and should not be considered investment advice. Always conduct your own research and due diligence before making any investment decisions.

Here are some helpful resources:

• https://etfportfolioplus.com/
• https://grayscale.co/emqq/
• https://www.marketwatch.com/investing/etf/emqq

Please note that the investment landscape changes constantly, and this analysis may not be accurate in the future.