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Capture Disruptive Growth in Emerging Markets with This ETF

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  • (1:30) - Why Are Chinese Tech Stocks Performing So Well?
  • (5:00) - 3 Mega Trends To Keep An Eye On
  • (10:35) - The Emerging Markets Internet & Ecommerce ETF: EMQQ
  • (19:45) - Should Investors Be Concerned About Growing Trade Tensions With China?
  • (25:30) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Kevin Carter, founder and CIO of the Emerging Markets Internet & Ecommerce ETF (EMQQ - Free Report) . EMQQ is the best performing fund in the space this year, last year, as well as over the past five years.

Biggest tech companies in the US have posted spectacular gains this year as they benefit from increasing digitization, but some of the Chinese tech giants have done even better despite rising trade tensions.  For example, the Chinse e-commerce giant JD.com (JD - Free Report) has surged over 74% in 2020.

China is home to 1.4 billion people. Due to restrictions imposed on foreign companies’ operations in the country, domestic tech companies flourish in this huge market. Tencent (TCEHY - Free Report) and Alibaba (BABA - Free Report) are among the world’s ten largest companies.

E-commerce industry has been growing at a rapid pace not only in China but other emerging markets as well, thanks to fast expanding middle class, rising incomes and growing use of internet and smartphones. We discuss why investors should not ignore this booming space.

EMQQ holds publicly traded companies deriving more than 50% of revenues from internet or ecommerce in emerging or frontier markets. Its top holdings includeMercadoLibre (MELI - Free Report) and Sea Limited ADR (SE - Free Report) , in addition to Chinese tech companies. Sea, a Singapore based internet and mobile platform provider, has soared over 240% this year, while MercadoLibre, the “Amazon of Central and South America” has more than doubled.

As a result, EMQQ has gained about 47% this year while the broad EM ETF--the iShares MSCI Emerging Markets ETF (EEM - Free Report) --is down about 2%.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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