EMQQ, the first broad-based emerging markets Internet and Ecommerce exchange traded fund (ETF), is up over 68 per cent so far in 2017, and now has over USD300 million in assets under management.
The fund has returned an average of 14.92 per cent annually since its launch three years ago, compared to 10.24 per cent per cent for the S&P 500 and 5.70 per cent for the MSCI Emerging Markets Index.
“EMQQ was created to provide investors with exposure to the growth of online consumption in emerging markets (EM),” says Kevin Carter, co-founder and chief executive officer of EMQQ Index, which designed the index on which EMQQ is based. “The populations in the emerging markets as defined by MSCI are younger and growing faster than in the developed world, and are in general becoming more affluent. At the same time, these emerging market countries are leap-frogging the traditional bricks and mortar way of doing business and moving substantial portions of their economies directly online. We think these are long running secular trends that could continue to drive ecommerce and EM growth for the foreseeable future.”
EMQQ seeks to track, before fees and expenses, the performance of EMQQ The Emerging Markets Internet and ECommerce Index, which requires that its constituents derive at least half of their revenue from Internet and Ecommerce businesses in emerging or frontier markets. The index is agnostic when it comes to exchange listing or company domicile; as long as a company generates more than half of its revenue in emerging markets, it is eligible for consideration for inclusion in the index. As of September 30 2017 the top five country exposures were China (65.11 per cent), South Korea (11.12 per cent), Russia (9.8 per cent) South Africa (6.44 per cent), and Argentina (3.71 per cent). India was sixth at 1.54 per cent.