Everything Emerging Market Investors Need to Know About EMQQ Global

What is EMQQ Global?

EMQQ Global is a San Francisco-based investment management and research firm focused on providing investors access to the fast-growing emerging and frontier markets technology sector. The companies we invest in represent the global expansion of smartphone-empowered consumers in emerging and frontier markets who are only now beginning to go online for the first time.

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Why Invest in the Emerging Markets Internet & Ecommerce space?

A growing middle class – “Demography is Destiny”.  Today, nearly 90% of the world’s population under the age of 30 lives in Emerging and Frontier Markets. Global demographic and technological advancement are expanding internet access and increasing affluence and consumerism in the developing world. By 2025, annual consumption in Emerging Markets is expected to reach $30 trillion, which McKinsey Global Institute calls the “biggest growth opportunity in the history of capitalism.”

Rapid 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.

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.

When did EMQQ Launch?

Our flagship product, EMQQ, launched in November 2014 after EMQQ Global Founder, Kevin T. Carter noticed his own consumption patterns changing via the smartphone.

How are the EMQQ, FMQQ, & INQQ Indexes Constructed?

Our indexes are constructed using the same methodology, varying only in their country exposure.

The EMQQ Global Methodology:

  • All companies with >50% of revenue from Internet and/or Ecommerce in Emerging and Frontier Markets
  • Minimum $300mm market capitalization
  • Liquidity screen $1.0mm average daily turnover
  • Rebalanced and reconstituted semi-annually in June and December
  • Fast-track IPO inclusion after 3 trading days if market cap >$10 Billion
  • Index Committee discretion (by majority vote for special inclusions and removals)
  • Market Cap weighted with 8% max weight per security at rebalance

What’s The Difference Between EMQQ, FMQQ, & INQQ?

All three products have the same thesis of providing advisors targeted exposure to the rapidly growing Emerging Markets Technology Sector, varying only by country exposure.

EMQQ:  All Emerging and Frontier Internet and Ecommerce companies that satisfy the index rules

FMQQ:  All Emerging and Frontier Internet and Ecommerce companies that satisfy the index rules, excluding China

INQQ:  Exclusively Indian Internet and Ecommerce companies that satisfy the index rules

How Do I Buy EMQQ, FMQQ, & INQQ?

Each strategy is tracked by an NYSE-listed ETF.