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Time to Buy China & EM Internet ETFs?

Internet & E-commerce are the fastest growing areas in developing countries.

By
This story originally appeared on Zacks

- Zacks
  • (1:15) - China’s Regulatory Crack Down On Internet and Ecommerce
  • (6:10) - What Is The Growth Potential For Chinese Technology Giants?
  • (11:30) - The Next Frontier Internet & Ecommerce ETF: FMQQ
  • (19:00) - How Do These ETFs Fit Into An Investors Portfolio?
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kevin T. Carter, Founder & Chief Investment Officer of EMQQ and FMQQ ETFs. We discuss explosive growth of the internet and e-commerce in China and other emerging markets.

The Emerging Markets Internet & Ecommerce ETF EMQQ is the best performing EM ETF. It has significantly beaten the most popular product in the space--the Vanguard FTSE Emerging Markets ETF VWO.

Tencent TCEHY, Alibaba BABA and JD.com JD are among its top holdings.  These Chinese tech giants have taken a beating this year as Beijing has toughened its regulations on sectors ranging from internet, fintech to education and gaming, and introduced new rules about the collection and use of personal data.

Investors continue to pour money into Chinese tech ETFs as they believe these stocks are very attractively valued at these levels. The KraneShares CSI China Internet ETF KWEB has gathered about $6 billion in inflows this year, even though it is down about 35%.

The Next Frontier Internet & Ecommerce ETF FMQQ provides exposure to the non-Chinese companies that are in EMQQ. These companies are leading the fast-growing e-commerce and internet sector in emerging and frontier markets of Asia, Africa, Latin America, and Eastern Europe.

MercadoLibre MELI, known as Latin America’s Amazon AMZN and Sea Limited SE, the internet and mobile platform giant headquartered in Singapore are among its top holdings.

Tune in to the podcast to learn more about these companies and ETFs.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.



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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

 

Sea Limited Sponsored ADR (SE): Free Stock Analysis Report

 

Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report

 

MercadoLibre, Inc. (MELI): Free Stock Analysis Report

 

JD.com, Inc. (JD): Free Stock Analysis Report

 

Alibaba Group Holding Limited (BABA): Free Stock Analysis Report

 

KraneShares CSI China Internet ETF (KWEB): ETF Research Reports

 

Vanguard FTSE Emerging Markets ETF (VWO): ETF Research Reports

 

EMQQ The Emerging Markets Internet & Ecommerce ETF (EMQQ): ETF Research Reports

 

FMQQ The Next Frontier Internet & Ecommerce ETF (FMQQ): ETF Research Reports

 

To read this article on Zacks.com click here.

 

Zacks Investment Research