Today, we proudly commemorate a remarkable milestone in the financial world — the 10th anniversary of the launch of EMQQ Global’s first ETF, The Emerging Markets Internet ETF (NYSE: EMQQ). Over the past decade, this fund has not only navigated the complexities of the smartphone-enabled emerging markets consumer but has also empowered investors to pursue its investment strategy.
From its inception, EMQQ has demonstrated innovation and a commitment to delivering value. As we reflect on a decade of achievements, we celebrate ingenuity, a diverse portfolio, and the support of investors who have made this journey possible.
Join us as we look back on the past ten years and eagerly anticipate the exciting opportunities that lie ahead!
The Emerging Markets Internet ETF tracks an index of leading Internet and E-Commerce companies serving Emerging Markets. It seeks to offer investors exposure to the growth of online consumption in the developing world. To be included, companies must derive their profits from E-Commerce or Internet activities, including search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.
The EMQQ Index provides exposure to the Internet and E-commerce sectors of Emerging and Frontier markets in Asia, Latin America, Africa, the Middle East, and Eastern Europe. The index covers over 140 companies operating in Emerging and Frontier Markets. The EMQQ Index is modified market cap weighted with the largest position capped at 8% during the semi-annual reconstitution and rebalance in June and December.
Why Invest in Emerging Markets Internet & E-commerce Companies?
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A growing middle class
Global demographic and technological advancements are expanding internet access and increasing affluence and consumerism in the developing world. According to 2023 data from World Economics, emerging and frontier markets are home to over 5.3 billion people, with a median age of 34 in emerging markets and 28 in frontier markets. Emerging markets typically have younger populations that are more tech-savvy and open to online shopping, driving demand for Internet services and e-commerce.
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Smartphone adoption rates driving online consumption– “The Leapfrog Effect.”
The plunging costs of smartphones and wireless broadband are providing unprecedentedly large swaths of the population in developing countries with access to the internet for the first time, enabling revolutions not just in consumption patterns but also in digital payments, communication, healthcare, education, entertainment, delivery, and more. Fun Fact: In the 10 years since EMQQ’s inception, the number of people who have smartphones has increased from 0.99 billion to 4.48 billion. [1]
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Diversification
EMQQ Global targets exposure to a global theme with over 130 emerging market tech companies to prevent any single company from exercising an outsize influence. Investing in emerging markets can provide diversification benefits, as these markets often have different economic cycles compared to developed markets.
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Valuation Opportunities
Many emerging market stocks may be undervalued compared to their developed-market counterparts, historically presenting opportunities for growth at a reasonable price.
The Emerging Markets Internet ETF has not only championed innovation but also played a pivotal role in investing in the digital landscape of emerging markets. Here’s to another decade of unlocking opportunities for investors and communities!
To learn more about EMQQ please visit emqqglobaletfs.com.
[1] Statista, Number of smartphone users worldwide 2014-2029. Retrieved 10/30/24, from https://www.statista.com/forecasts/1143723/smartphone-users-in-the-world
Disclosures
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting www.emqqglobaletfs.com. Read the prospectus carefully before investing.
Market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
Risk Information
Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The funds are non-diversified. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Frontier markets generally have less developed capital markets than traditional emerging market countries, and, consequently, the risks of investing in foreign securities are magnified in such countries. These countries are subject to potentially significant political, social and economic instability, which could materially and adversely affect the companies in which the Fund may invest. The Fund invests in the securities of Internet Companies, including internet services companies and internet retailers, and is subject to risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund’s investments.
There is no guarantee that the Funds or the index will achieve its investment objective. Diversification may not protect against market risk. Past performance does not guarantee future results.
Exchange Traded Concepts, LLC serves as the investment advisor, and Penserra Capital Management LLC serves as a sub-advisor to the EMQQ ETF. Exchange Traded Concepts, LLC serves as the investment advisor for FMQQ ETF and INQQ ETF. The Funds are distributed by SEI Investments Distribution Co. (SIDCO) 1 Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Exchange Traded Concepts, LLC or Penserra Capital Management LLC.
Important Disclosures
Exchange Traded Concepts is an SEC Registered Investment Adviser. The Firm's Form ADV is publicly available and can be found here: https://www.adviserinfo.sec.gov/Firm/151197. ETC may be subject to various conflicts of interest in the provision of its services. Potential conflicts of interest shall be identified in the Firm's Form ADV. The Exchange Traded Funds are referred to as "Funds" for purposes of this document. ETC transacts business in the United States and other jurisdictions where it is properly registered or excluded or exempted from registration requirements. This document does not constitute an offer of services in jurisdictions where ETC does not have the necessary licenses.
No representation is made that any Fund's investment process, objectives, goals or risk management techniques will or are likely to be achieved or be successful or that any Fund or any underlying investment will make any profit or will not sustain losses. The risks of investing in a Fund will not be negated by ETC's Fund services, and no assurance is given that a Fund will not be exposed to risks of significant trading losses.
The information provided herein does not constitute tax, legal or accounting advice. ETC does not provide legal, financial, accounting or tax advice. Clients and prospective Clients, as well as investors and prospective investors in a Fund ("Investors") are advised to seek the counsel of their own legal, financial and tax advisors for all matters relating to the services and structures contemplated herein. Each Investor (either alone or with its professional advisors) is solely responsible for its own due diligence, risk assessment and tolerance, investment objectives, any decision to invest in a Fund, and for monitoring its investment for purposes of determining whether it wishes to remain invested in such product and whether such product continues to be appropriate for its circumstances and requirements.
The information provided herein: (a) is provided as of the date indicated, (b) is in summary only and is not complete, and (c) is subject to change at any time without notice. Certain information provided by ETC is based on third-party sources and, although generally believed to be reliable, has not been independently verified. ETC is not responsible for errors or omissions from these sources. No representation is made with respect to the accuracy, completeness, or timeliness of such information, and ETC assumes no obligation to update or otherwise revise such information. In no event will ETC be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with the use of the information contained herein, even if advised of the possibility of such damages. ETC and its respective employees and its affiliates hereby exclude, to the extent permitted by applicable law, all liability in connection with the use of the information herein.
Interests in Funds will not be insured by the FDIC, the SIPC or any other organization, will not be deposits of any bank, and are not guaranteed by any bank.