The Emerging Markets Internet and E-Commerce ETF (EMQQ) helps investors get more exposure to the growth of online consumption in the developing world, said Kevin Carter, chairman of the EMQQ Index. Carter said current emerging market ETFs focus too heavily on state-owned companies including massive banks and oil companies, while excluding most of Internet and e-commerce companies which supply much of the growth. Carter said emerging markets comprise 50% of global GDP and 80% of the world’s population, but make up just 2.5% of the average U.S. investor’s portfolio. Unlike the largest existing emerging market ETFs, EMQQ includes major e-commerce companies like 58.com. '58.com is generally considered to be the ‘Craigslist of China’, says Carter. 'It’s a high margin business and that’s hard to replicate anywhere.' The EMQQ also holds shares of Mercadolibre, which is 20% owned by eBay so investors 'get better corporate governance in a region where it is often lacking.'
More from Emerging Markets
Indonesian stocks have done poorly this year, but these nine stocks could rate attention if investors rediscover the market.
A U.S. dollar that is rising in value against most other currencies is creating a huge problem for a world inundated with dollar-priced debt.
As global markets breached their key 200-day moving averages and with uptrends being tested, there were rumours of globally coordinated central bank easing.
From bonds to energy to emerging markets, an examination of what might be hot and what might not.
Shares of Cresud have been hammered by a big political shift in Argentina, which makes the farming name a value play not for the faint of heart.