HANetf and EMQQ launch new ETF to capture e-commerce growth potential

On Jan 15, 2022

The new fund will seek to harness the growth potential of internet and e-commerce companies in frontier and emerging markets economies other than China, such as India, Brazil, Mexico, Russia, Turkey, Nigeria and Indonesia

HANetf and EMQQ announced the launch of a second emerging markets exchange traded fund (ETF) that exposes investors to e-commerce and internet companies in developing markets excluding China.

In a statement, HANetf and Kevin T Carter, the founder of EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (LSE:EMQQ), said FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF launched on the London Stock Exchange, Deutsche Börse (ETR:DB1), Borsa Italiana and Euronext Paris today.

The FMQQ ETF will provide investors with targeted exposure to the non-Chinese companies that are in EMQQ Emerging Markets Internet and Ecommerce UCITS ETF, seeking to harness “the incredible growth potential” of internet and e-commerce companies in frontier and emerging markets economies other than China, such as India, Brazil, Mexico, Russia, Turkey, Nigeria and Indonesia.

“We launched EMQQ Emerging Markets Internet & Ecommerce UCITS ETF in 2018 on LSE with the conviction that internet and e-commerce companies in the developing world represented the best way to capture the real growth of emerging markets – the emerging markets consumer – and we’ve been right,” said Carter.

“Today, nearly 90% of the world’s population under the age of 30 lives in emerging economies. By 2030, the global middle class is expected to swell to 5.5 billion people with consumption in emerging markets totalling US$30trn – nearly half of the global total.”

China’s e-commerce market is now four times larger than the rest of the emerging markets e-commerce space combined, so investors should have the opportunity to build an emerging markets portfolio with as much, or as little, China exposure as they may want, Carter stated.

“We believe FMQQ can be an attractive alternative for investors who want to capture the budding opportunities in these ‘next frontier’ markets and/or complement their Chinese tech allocations and balance out their current portfolio weightings,” he concluded.

Hector McNeil, co-CEO of HANetf, added: “EMQQ has been a thematic favourite with investors in Europe and we’re excited to offer European investors the opportunity to capture the potential growth in the emerging and frontier markets consumer story beyond China.”