EMQQ's portfolio does not consistently align with its stated focus on emerging markets internet and e-commerce companies, diluting its investment thesis. A significant portion of EMQQ's holdings are from developed markets or sectors outside internet and e-commerce, undermining its thematic purity. The ETF charges high fees (0.86%) and has underperformed its lower-fee peer KEMQ across multiple timeframes, making it less attractive.
Kevin Carter of EMQQ Global says that India is a very special situation and that the digital and internet sectors are particularly exciting.
Emerging markets have significantly underperformed U.S. equities recently, but multiple factors may contribute to a break in this recent trend. Middle class populations in emerging markets are expected to see tremendous growth, contributing to demand for internet and ecommerce. EMQQ focuses on the growing consumption of internet and ecommerce in emerging markets, but I discuss an alternative global fund in this article with potentially lower risk and better performance.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
Kimberly Van Winkle Twelve Points Wealth Management LLC | 41,769 | $1.71M | $1.4M | -$303,713.56 | -17.79% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 70 | $2,744.7 | $2,343.6 | -$401.1 | -14.61% |
| WKS White Knight Strategic Wealth Advisors LLC White Knight Strategic Wealth Advisors LLC | 22,473 | $782,254.32 | $754,980.43 | -$27,273.89 | -3.49% |
Candace Cavalier Congress Wealth Management LLC / DE / | 22,693 | $865,964.88 | $759,875.1 | -$106,089.78 | -12.25% |
Daniel Guy Ethos Financial Group LLC | 12,857 | $496,564.88 | $433,088.04 | -$63,476.84 | -12.78% |
| ARCA Exchange | US Country |
The fund is an investment entity that focuses on capitalizing on the growth potential of emerging market internet and e-commerce sectors. By investing in securities that make up the index or in depositary receipts that represent such securities, the fund aims to mirror the performance of the index curated by EMQQ Global LLC, the index provider. This strategy is designed to engage with the dynamically evolving sectors within emerging markets, offering investors exposure to companies at the forefront of internet and e-commerce innovation. The fund's distinctive approach is underscored by its non-diversified status, which allows for concentrated investments in this niche area, potentially leading to higher returns albeit with increased risk.
The core product of the fund involves investing in a range of securities that are part of the designated index. This includes direct investments in stocks of companies within the emerging market internet and e-commerce sectors. By doing so, the fund seeks to replicate the index's performance, leveraging growth in these high-potential markets for the benefit of its investors.
Apart from direct securities investment, the fund also invests in depositary receipts. These financial instruments represent a specific number of shares in a foreign company and are an effective way for investors to gain exposure to emerging market companies without the complexities of direct investments in foreign markets. This approach enhances the fund's accessibility to high-growth opportunities in the internet and e-commerce sectors of emerging economies.