Cheers to a Decade of Championing Innovation, Congratulations on 10 Years EMQQ!

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?

• 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.

• 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]
  

• 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. 

• 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.