Emerging markets are experiencing rapid economic growth and a rise in consumer demand, offering a significant opportunity for digital platforms and e-commerce to thrive.
India's large population, young demographics, government commitment to digitization, and robust infrastructure development make it an attractive investment opportunity in the emerging markets internet space.
Deep dives
EMQQ Global: Investing in Emerging Markets Internet Companies
EMQQ Global is an investment management firm based in San Francisco that focuses on the emerging markets internet space. They invest exclusively in internet and e-commerce companies in emerging and frontier markets, with a particular emphasis on China and India. The firm recognizes the potential of emerging markets, which are experiencing rapid economic growth and a rise in consumer demand. With billions of people in these markets seeking more and better products and services, EMQQ Global aims to capture this growth through index funds that track the performance of these internet companies.
The Rise of the Digital Consumer in Emerging Markets
EMQQ Global's CEO, Kevin Carter, emphasizes the changing consumption patterns in emerging markets due to the rise of smartphones and access to the internet. While developed markets have well-established consumption infrastructure, emerging markets are leapfrogging traditional consumption methods and relying heavily on these digital platforms. In countries like India with its fast-growing economy, swelling middle class, and robust smartphone penetration, there is a significant opportunity for e-commerce and other digital services to thrive. Carter believes that the digitization trend in emerging markets will continue and highlights the importance of the fintech sector, such as mobile payments, as the foundation for further growth.
The India Opportunity
Carter expresses his optimism about India's potential in the emerging markets internet space. With the country's large population, young demographics, and a government committed to digitization, India offers a compelling investment opportunity. The growth of the middle class, increasing smartphone adoption, and the fast-growing e-commerce market are all factors that contribute to India's attractiveness. Carter also notes that the infrastructure development in India, such as highways and railway systems, further supports its economic growth. The energetic and optimistic mood among people in India, similar to what he observed in China years ago, further reinforces his belief in India's potential.
EMQQ's ETFs: Investing in Emerging Market Internet Companies
EMQQ Global offers three exchange-traded funds (ETFs) that provide investors with exposure to emerging market internet companies. Their flagship product, EMQQ, tracks the performance of emerging and frontier market internet companies, with a focus on China. This ETF includes major Chinese internet giants like Alibaba and Tencent. They also have FMQQ, an ETF that excludes China to provide investors with exposure to emerging market internet companies outside of China. INQQ is their ETF specifically focused on the Indian market and captures the growth in Indian internet and e-commerce companies. The methodology for constructing the indices underlying these ETFs follows a market cap-weighted approach with certain liquidity and minimum criteria. Carter believes that these ETFs are well-positioned to capitalize on the growth potential of emerging market internet companies.
On this episode of #PaisaVaisa, Anupam sits with Kevin T. Carter- Founder and CIO of EMQQ Global. They talk about the Emerging Markets across the globe and what makes India a compelling market for global investment opportunity. Having launched a one-of-a-kind Index- The India Internet & Commerce Index, Kevin talks ETFs, new age tech stocks, the Indian Market potential and much more on this episode of Paisa Vaisa!
Find Kevin T. Carter on social media: Twitter: (https://twitter.com/thekevintcarter/) LinkedIn: (https://www.linkedin.com/in/thekevintcarter//)
Get in touch with our host Anupam Gupta on social media: Twitter: ( https://twitter.com/b50 ) Instagram: ( https://www.instagram.com/b_50/ ) Linkedin: (https://www.linkedin.com/in/anupam9gupta/ )
You can listen to this show and other awesome shows on the IVM Podcasts website at https://www.ivmpodcasts.com/