The EMQQ Emerging Market Internet & Ecommerce UCITS ETF has reached reached USD100 million in AUM, driven by performance and new investment flows.EMQQ made history in October 2018 when it listed on London Stock Exchange, becoming the first UCITS ETF to launch via the HANetf white-label platform.
The fund provides exposure to an index of leading companies driving the growth of online consumption in the developing world. To be included, companies must derive more than half their profits from Ecommerce or internet activities, including search engines, online retailers, social networks, online video, online gaming, e-payment systems and online travel. Unlike most emerging market indices the companies included do not need to be listed locally.
The EMQQ Emerging Markets Internet & Ecommerce index was created by Kevin Carter, CEO of Big Tree Capital and includes luminaries such as Burton Malkiel, Princeton Professor of Economics on its advisory board. The strategy has been one of the best-performing emerging market funds in the world over 2020. The EMQQ UCITS ETF delivered 16.63 per cent in June 2020, 32.68 per cent YTD and 47.27 per cent in one year.
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Kevin Carter, Founder of EMQQ, says: “We’re delighted to see the success that EMQQ has had in Europe which validated our strategy of diversifying our distribution beyond North America. EMQQ has resonated as the story is simple – as emerging market consumers become wealthier they will do more, buy more and work more via their mobile phones and tablets. EMQQ taps into the heart of this massive change that is affecting more than half of the world’s population.”
He further commented: “The performance of the Emerging Markets Internet and Ecommerce space in 2020 has been a bright spot not just in EM investing but in looking across global markets as well, and has been achieved despite the ongoing COVID-19 pandemic, seemingly never-ending trade tensions, and delisting threats in the US. Covid-19 seems to have acted as an accelerator for smartphone Ecommerce in Emerging Markets. This, coupled with what we believe to be strong fundamentals and attractive valuations, could continue to offer further potential growth for emerging market internet and e-commerce companies going forward.”
Hector McNeil, co-CEO of HANetf, says “Congratulations to Kevin Carter and the team on reaching this milestone, which will only be the start for EMQQ. Kevin put his faith in a new idea – a white-label platform that would manage all the operational, regulatory and distribution elements that make an ETF successful and we’re delighted that we have helped support his vision of bringing EMQQ to European investors with a strong start.
The HANetf team is one of the most experienced in the market and we continue to grow a formidable sales, distribution and marketing capability that gives our clients instant scale and reach, enabling them to compete, succeed and win in the high-growth, competitive European ETF market. This growth, issuing seven more highly innovative ETFs for five other clients all entering the European market proves HANetf’s long track record of product innovation and most importantly raise assets under management in a highly competitive market.”