EMQQ has launched a frontier market version of its emerging market internet and eCommerce ETF via white-label platform HANetf.
The FMQQ Frontier Market Internet & Ecommerce UCITS ETF (FMQQ) is listed on London Stock Exchange, Deutsche Boerse, Borsa Italiana and Euronext Paris with a total expense ratio (TER) of 0.86%.
First launched in the US last September, FMQQ will track the Next Frontier Internet and Ecommerce index, investing in companies that make their revenues from the internet and ecommerce in emerging and frontier markets, excluding China.
It currently comprises 60 stocks across 16 countries including in EMEA, Asia and Latin America.
Its top ten holdings currently include Indian conglomerate Reliance Industries (9.7%), Argentine online marketplace MercadeLibre (7.6%) and Korean ecommerce giant Coupang (5.2%).
Kevin Carter, founder and CEO of EMQQ ETF, said: "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 $30 trillion – nearly half of the global total.
“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.”
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.”
HANetf helped launch the EMQQ Emerging Market & Ecommerce UCITS ETF (EMQQ) in the UK in 2018, having launched in the US four years earlier.
It is the first launch for the white-label platform this year following a strong 2021 in which it brought 12 ETFs to market.