EMQQ: No Catalyst, But Attractive Valuation
EMQQ has plunged from YTD gains to a six-month loss, yet apparently valuations now sit below historical averages, suggesting a possible value opportunity. The fund's P/E of 18.49x is roughly 2 standard deviations below its 3-year average, even as aggregate revenue and earnings grew 15.5%. Weekly RSI near the 30-point zone points to a potential bottom, though no clear catalyst currently supports a near-term rebound.
EMQQ: Questionable Holdings And High Fees
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.
For long-term investors, India is the perfect emerging market: EMQQ
Kevin Carter of EMQQ Global says that India is a very special situation and that the digital and internet sectors are particularly exciting.
EMQQ: Promising Emerging Markets ETF, But With Notable Downsides
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.
