SAN FRANCISCO--(BUSINESS WIRE)--The Emerging Market Internet & Ecommerce ETF (EMQQ) today announced robust one-year performance as of June 2020 and the results of its semi-annual rebalancing.
With this latest rebalance, the Index has gone from 77 to 83 companies, adding nine new companies and dropping three companies due to the Index rules on market cap, liquidity, and trading volume. The Emerging Markets Internet & Ecommerce ETF (EMQQ) is up over 45% for the past one-year period through June 19th, 2020 and recently surpassed $650 million in AUM as investors have been drawn to the long-term growth potential the Emerging Market consumer.
EMQQ launched on 11/13/2014 and has a live track record of well over 5 years. For important standard performance information as of the most recent quarter and month-end and disclosures for EMQQ please click here.
Among the more interesting new firms that were added to the EMQQ index last week are:
Alibaba Health Information Technology Ltd (AHIT), a technology-enabled solution provider principally engaged in the operation of product identification, authentication and tracking systems (PIATS) mainly for the drug industry in China, as well as the construction of a medical services network, pharmaceutical e-commerce and the provision of other internet solutions for the healthcare sector. AHIT also operates cloud hospital platform to connect doctors, patients, pharmacies, and third-party medical service providers; and online and offline pharmacy platform to connect consumers with offline retail pharmacies by allowing parties to exchange relevant information online.
360 Finance, Inc. is a leading digital consumer finance platform and the finance partner of the 360 Group, connecting over one billion accumulated mobile devices. The Company provides tailored online consumer finance products to prime, underserved borrowers funded primarily by its funding partners. 360 Finance, Inc.’s proprietary technology platform enables a unique user experience supported by resolute risk management. When coupled with its partnership with 360 Group, the Company's technology translates to a meaningful borrower acquisition, borrower retention, and funding advantage, supporting the rapid growth and scaling of its business.
Kingsoft Technologies Limited is a software developer and internet service provider in China. Kingsoft's main business encompasses internet security, office software, entertainment software, cloud computing, and online translation. The Company utilizes the internet as an effective channel to market and distribute its products, and has built an extensive sales and distribution network. Its subsidiaries include Xishanju Game, Kingsoft Internet Security Software, WPS office, JC Studio, KSyun, and Adin Studio.
EMQQ Index Added 9 Companies June 19, 2020, Rebalance:
360 Finance, Alibaba Health, Futu Holdings, Kginicis Co Ltd., Kingsoft Technologies, Kingsoft Cloud Computing, Locaweb Servicos De Internet, Maoyan Entertainment.
EMQQ Index Deleted 3 Companies June 19, 2020, Rebalance:
Ruhnn Holdings Ltd., Yiren Digital Ltd., Yunji Inc.
EMQQ's underlying Index, the Emerging Markets Internet & Ecommerce Index, is overseen by a committee that includes such industry luminaries as Dr. Burton Malkiel, Mr. Richard Kang, and Dr. Linda H. Zhang. On November 13th, 2014, when EMQQ launched, its Index had 43 constituents at that time. This near doubling of the Index constituents over the ensuing five years is due to the growth of the Internet and Ecommerce industry in Emerging Markets.
"The performance of the Emerging Markets Internet and Ecommerce space in 2020 has been a bright spot not just in EM investing but in looking across global markets as well, and has been achieved despite the ongoing COVID-19 pandemic, seemingly never-ending trade tensions, and delisting threats in the U.S.," said Kevin Carter, founder of EMQQ. "But this has the potential to be much more than a quarter-to-quarter or even year-to-year story. COVID-19 seems to have acted as an accelerator for smartphone Ecommerce in Emerging Markets. This, coupled with what we believe to be strong fundamentals and attractive valuations, could continue to offer further potential for Emerging Markets Internet and Ecommerce companies to see potential growth going forward."
The next semi-annual rebalance for EMQQ will take place in December 2020.
Performance (As of 06/19/20) |
1 month |
|
3 months |
|
YTD |
|
1 year |
|
3 years |
|
5 years |
|
EMQQ |
15.50% |
|
61.51% |
|
29.21% |
|
45.41% |
|
13.00% |
|
12.31% |
|
Ticker (NAV) |
15.40% |
|
62.44% |
|
29.75% |
|
46.42% |
|
13.18% |
|
12.50% |
|
EMQQ The Emerging Markets Internet & Ecommerce Index |
15.57% |
|
62.97% |
|
30.39% |
|
47.68% |
|
14.20% |
|
13.57% |
|
All returns over 1 year are annualized. All returns are total returns unless otherwise stated |
||||||||||||
Chart Source: ETF.com as of 6/19/2020. The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance current to the most recent month-end, please visit www.emqqetf.com. High short-term performance of the fund is unusual and investors should not expect such performance to be repeated. The unusually favorable conditions that may lead to higher returns may not continue to exist and there can be no assurance that performance will be repeated in the future.
About EMQQ
The Emerging Markets Internet and Ecommerce ETF (EMQQ) seeks to track, before fees and expenses, the Emerging Markets Internet and Ecommerce Index. The index invests in companies with exposure to the Ecommerce and Internet sectors in emerging markets. Purchasing EMQQ provides exposure to companies that are positioned to benefit as emerging economies mature, the consumer class expands, and their populations increase their utilization of the Internet and ECommerce.
EMQQ now holds 83 companies operating in Emerging and Frontier Markets including China, India, Brazil, Russia, South Korea, Taiwan, South Africa, Mexico, Argentina, Malaysia, Thailand, Indonesia, Vietnam, Philippines, Turkey, Czech Republic, Poland and Colombia. To view holdings information, click here.
Important 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.emqqetf.com. Read the prospectus carefully before investing.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market price returns are based upon the midpoint of the bid/ask spread at the close of the exchange and does not represent the returns an investor would receive if shares were trade at other times. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time.
Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The fund is 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 Fund or the index will achieve its investment objective.
Exchange Traded Concepts, LLC serves as the investment advisor, and Penserra Capital Management LLC serves as a sub advisor to the fund. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Exchange Traded Concepts, LLC or Penserra Capital Management LLC.
