For investors looking for momentum, The Emerging Markets Internet & Ecommerce ETF (EMQQ - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 54.7% from its 52-week low price of $26/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
EMQQ in Focus
This ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of EMQQ The Emerging Markets Internet & Ecommerce Index. It has AUM of $549.9 million and charges 86 basis points (bps) in annual fees.
Why the Move?
In order to contain the spread of the virus, governments across the globe have been shutting down economic activities and imposing social distancing measures. In the current scenario, consumers are opting for online retailers to purchase food items and other goods and are resorting to video streaming services and other modes of in-house entertainment. Also, the pandemic has resulted in some changes in the lifestyle and preferences of people. Most of the surveys have found that people are opting for online shopping over visiting a brick-and-mortar store for their purchases of essential food items and supplies. Even as the global economy starts to reopen in phases and social distancing restrictions are being eased, people will try to minimize the human-to-human contact. This making funds like EMQQ an attractive investment option.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 34.30, which gives cues of further rally.
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