|Bid||31.78 x 1200|
|Ask||31.84 x 1400|
|Day's Range||31.70 - 31.87|
|52 Week Range||25.90 - 35.31|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||17.48%|
|Beta (3Y Monthly)||1.58|
|Expense Ratio (net)||0.86%|
When it comes to getting exposure to emerging markets, it’s difficult to ignore adding China to the mix given its relative size. However, like a made-to-order hamburger, individuals can opt to hold the lettuce or in the case of investors, they can exclude exposure to China via the iShares MSCI Emerging Markets ex China ETF (EMXC).
Emerging market stocks and related ETFs may be a way for investors to capture a relatively cheap segment of the global markets. "Very often, in the past, emerging market stocks have sold at enormous price-earnings multiples for the market. The emerging markets as a whole, we've come down from the high 30s to the 11 to 13 range," Dr. Burton Malkiel, Princeton Economist, said, referring to the current price-to-earnings ratios for developing market equities.
When it comes to getting exposure to emerging markets, it’s difficult to ignore adding China to the mix given its relative size. Given the second largest economy’s recent slowdown, it’s a move to consider if investors still want exposure abroad. “China is the 800-pound panda in any conversation about what is going on in the world today,” wrote Barron’s Reshma Kapadia.
This trend, especially in emerging markets (EM) can fuel EM-focused funds like the Emerging Markets Internet & Ecommerce ETF (EMQQ) . One of the leading purveyors in cashless payments is China. “Visitors to China will quickly observe that the country is rapidly transforming into a cashless society,” the fund noted in an email.
Along with a core emerging market position, investors may consider augmenting their developing economy exposure with something like the Emerging Markets Internet & Ecommerce ETF (EMQQ). It is basically designed to see the growth of consuming middle classes in the emerging markets," Dr. Burton Malkiel, Princeton Economist, said. "It is probably the first satellite fund that I would recommend is that I think it is designed to capture exactly the kind of growth in emerging markets that I think will continue to occur," Dr. Malkiel added.
Investors who are looking to diversify into the emerging markets should consider a core exchange traded fund position and supplement this with a satellite holding. "I think that an exposure to emerging markets probably ought to have a core and satellite structure to it," Dr. Burton Malkiel, Princeton Economist, said. Dr. Malkiel explained that a core emerging market position would include something like the Vanguard FTSE Emerging Markets ETF (VWO) or the iShares Core MSCI Emerging Markets ETF (IEMG) as they both provide broad developing market exposure at a cheap cost to investors.
With the growing influence of a rising middle-income consumer base in developing countries and their preference for online shopping via digital devices, investors can capitalize on the rapidly expanding e-commerce segment through a targeted exchange traded fund. On the recent webcast, Where the Growth is in Emerging Markets: Alibaba, MercadoLibre & Tencent are Transforming the World, Kevin Carter, Founder and CEO of EMQQ, highlighted the favorable demographics that could continue to support consumption-based growth in the emerging markets, with 85% of the global population residing in developing economies and also accounting for about 50% of global GDP. Looking ahead, middle-income consumers will take on a greater role in the emerging and developing economies.
While the trade war between the U.S. and China intensifies and casts a shadow on the global economy, investors should not overlook the potential opportunities developing in emerging markets. “The vast majority of emerging market consumers have never owned a car, have never had a big box retail store to drive to, nor have they owned a computer of any kind, let alone one with an Internet connection.
While the capital markets are communicating a risk-off sentiment with an appetite for bonds and other safe haven assets, investors should keep an eye on emerging markets, which have been experiencing sustained growth. “Emerging markets are growing, on average, by over 4.5%, and that is pulling up the world economy,” said World Bank vice president Ian Goldin. Emerging markets have always given investors another look at the global growth landscape, particularly since they could be in different economic phases—for example, the U.S. could be reaching a peak while an emerging market country could be in a growth acceleration phase.
As investors take a hard look at their portfolios, people should consider incorporating emerging market and related exchange traded fund exposure for more diversified investment exposure. You know that emerging markets from practically nothing, now has half or more of the world's GDP. Emerging markets are growing much faster than developed markets.
China was given the unfortunate moniker of "currency manipulator" by the U.S. Treasury after the department accused Beijing of influencing the exchange rate between the yuan and the U.S. dollar in order to gain an “unfair competitive advantage in international trade.” Does this latest development put emerging markets in play? "Not to be outdone in the latest round of trade 'discussions,' the U.S. slapped a currency manipulator tag on China, placing it in the jolly good company of Switzerland, Germany, Taiwan, South Korea, Japan, Israel, Sweden and, until recently, the Czech Republic," said EMQQ, an emerging markets fund, in an email. The U.S.-China trade impasse has been heavily discounting a lot of U.S. equities with the latest round of sell-offs, but it's also putting the red tag sale on emerging markets (EM).
"First world problems" is a common quip in developed markets where occurrences like lost smartphones may not translate to tangible issues in other parts of the world like emerging markets (EM). The increased adoption of the smartphone is allowing certain companies to thrive, which is opening up opportunities for investors to get a piece of the action via exchange-traded funds (ETFs) like the Emerging Markets Internet & Ecommerce ETF (EMQQ) . In EM, smartphone adoption in certain parts of the world is just hitting the tip of the iceberg in terms of economic growth via ecommerce, according to a report by mobile network trade group GSMA.
In emerging markets (EM), smartphone adoption in certain parts of the world is just hitting the tip of the iceberg in terms of economic growth via ecommerce, according to a report by mobile network trade group GSMA. The increased adoption of the smartphone is allowing certain companies to thrive, which is opening up opportunities for investors to get a piece of the action via exchange-traded funds (ETFs) like the Emerging Markets Internet & Ecommerce ETF (EMQQ) . "The rapid growth of smartphones has helped the growth of ecommerce," the fund wrote in an email.
With the Federal Reserve ready and willing to implement rate cuts in 2019 if needed, investors on the hunt for more income may need to look towards higher-risk, higher-yielding assets like emerging markets (EM). This could mean a push towards EM debt or other opportunities that corner other areas of the EM space like technology. The U.S.-China trade impasse heavily discounted a lot of U.S. equities, especially during the month of May, but it also put the red tag sale on emerging markets (EM).
A partnership between Chinese firm Alibaba and the National Basketball Association (NBA) could provide a boost for the Emerging Markets Internet & Ecommerce ETF (EMQQ) , which features Alibaba as one of its prime holdings with a 7 percent weighting. The agreement, entered into in March, would provide for distribution of NBA content and merchandise across the Chinese company's platforms--media outlets as well as ecommerce sites. "NBA game highlights, original programming, and classic NBA games will be offered to Alibaba users," writes ETC Marketing Services.
The Emerging Markets Internet & Ecommerce ETF (EMQQ) marries the idea of technology and emerging markets (EM) in one ETF and one of its holdings owns Ant Financial, which could prove to be a disruptive player in a budding financial technology industry. EMQQ seeks to provide investment results that correspond generally to the price and yield performance of EMQQ The Emerging Markets Internet & Ecommerce Index. Alibaba Group, one of the majority stakeholders in Ant Financial is one of the fund's top holdings, which makes EMQQ a prime play for investors looking to gain off the strength of the company's ability to be a major disruptive force in its industry.
The iShares North American Tech-Software ETF (IGV) soared 1.5% higher on Wednesday after one of its largest holdings, cloud software company Salesforce, reported better-than-expected earnings for its first quarter of the 2020 fiscal year. "I am thrilled with our results this quarter, and I am especially excited to have delivered record revenue in Q1 and operating cash flow of almost $2 billion, up 34% year-over-year," said Marc Benioff, chairman and co-CEO, Salesforce. "Our strong revenue growth in the quarter reflects the strength of our business and the tremendous demand we're seeing from customers worldwide," said Keith Block, co-CEO, Salesforce.
China is one of the biggest purveyors of blockchain-based technology and now its biggest player in the search engine space, Baidu, is getting into the game in an effort to support the creation and development of decentralized applications. As one of its top 10 holdings, this latest foray by Baidu could help boost the Emerging Markets Internet & Ecommerce ETF (EMQQ) , which marries the idea of technology and EM in one ETF. EMQQ invests in companies with exposure to the ecommerce and Internet sectors in emerging markets.
The U.S.-China trade impasse paved the way for discounts in a lot of U.S. equities, but it also put the red tag sale in the emerging markets (EM) space. One corner of EM that investors may not have considered ...
When you've been at the top of your game for so long, sooner or later a competitor will try and challenge your spot on the throne, which is exactly what China tech powerhouse Alibaba is trying to do to leading travel services provider Ctrip. This could see two of China's biggest companies going head-to-head in the travel industry. Alibaba's travel unit Fliggy is taking aim at a niche market share composed of millennials, digital technology, and premium services.
The U.S.-China trade impasse heavily discounted a lot of U.S. equities the past week, but it also put the red tag sale on emerging markets (EM). While most investors might have been driven away by the losses in EM during much of 2018, savvy investors who were quick to see the opportunity viewed EM as a substantial markdown. From a fundamental standpoint, low price-to-earnings ratios in emerging markets ETFs have made them prime value plays as capital inflows continue in 2019.
Getting in on unicorns' ground floors can be difficult for many investors, but the Emerging Markets Internet & Ecommerce ETF (EMQQ) offers a compelling route to some international unicorns. Chinese Internet giant Tencent Holdings Ltd. (TCEHY), EMQQ's largest holding, is a unicorn breeding ground. “Among the 700 companies, 63 are now listed, and 122 are unicorns with market capitalization or value of more than $1 billion,” according to EMQQ. “During 2018, 16 of the invested companies went public, including the much-publicized Tencent Music Entertainment Group (TME). The combined total market capitalization of companies in which Tencent holds more than 5% now exceeds $500 billion.” What's Next for EMQQ?
As more investors look to developing economies for greater growth and enhance returns, many are looking to a consumer sector ETF that focuses on the ’emerging people.’