Emerging-Consumer ETFs As Varied As A Mall

February 19, 2015

 

Developed Companies, Emerging Markets
In April 2014, emerging market specialist EGShares broke new ground with the launch of theEGShares Blue Chip ETF (BCHP | F-34). The fund holds only developed-market companies that derive a significant portion of their revenues from emerging markets.

The idea behind this theme is that many exporting companies from developed nations also stand to benefit from the rising emerging-consumer class.

BCHP isn't a consumer pure-play, but technology, cyclicals and non-cyclicals make up more than 50 percent of its weighting, combined. Many global consumer-focused companies like Yum Brands, Anheuser-Busch, Las Vegas Sands and Givaudan are among the fund's top holdings.

BCHP is a highly concentrated portfolio, holding only 30 securities. It's not conventional, but can be used as a complement for investors looking to add developed-market companies to their emerging-consumer-themed investment allocation.

 

 

Focusing On The Internet
New issuer EMQQ Index recently brought to market another ETF with a heavy footprint in the emerging market consumer space: the EMQQ Emerging Markets Internet & Ecommerce ETF (EMQQ).

EMQQ specifically targets Internet and ecommerce companies from emerging markets. A significant portion of emerging consumption is expected to take place over the Internet in the coming years, as advances in smartphone technology lead to a surge in the online retail market.

More importantly, EMQQ holds many U.S.-listed Internet and ecommerce consumer-focused companies excluded from broader MSCI- and FTSE-based emerging indexes.

 

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