The Emerging Markets Internet and E-Commerce ETF (EMQQ) helps investors get more exposure to the growth of online consumption in the developing world, said Kevin Carter, chairman of the EMQQ Index. Carter said current emerging market ETFs focus too heavily on state-owned companies including massive banks and oil companies, while excluding most of Internet and e-commerce companies which supply much of the growth. Carter said emerging markets comprise 50% of global GDP and 80% of the world’s population, but make up just 2.5% of the average U.S. investor’s portfolio. Unlike the largest existing emerging market ETFs, EMQQ includes major e-commerce companies like 58.com. ’58.com is generally considered to be the ‘Craigslist of China’, says Carter. ‘It’s a high margin business and that’s hard to replicate anywhere.’ The EMQQ also holds shares of Mercadolibre, which is 20% owned by eBay so investors ‘get better corporate governance in a region where it is often lacking.’
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