Kevin T. Carter and the team behind the EMQQ and FMQQ ETFs are announcing the launch of their third exchange traded fund: The India Internet and Ecommerce ETF (INQQ).
INQQ offers targeted exposure to the companies leading India’s digitization, which the team at EMQQ Global believes is unique in the ETF marketplace. In tandem with the rollout of INQQ, Carter and his team are also announcing a new overarching company name for all their ETF efforts, “EMQQ Global”, as the firm continues to build out its product lineup and as the digital revolution in emerging and frontier markets rapidly expands.
INQQ trades on the New York Stock Exchange (NYSE) and will provide investors exposure to the companies leading the wave of ecommerce and internet innovation that is reshaping many corners of Indian business, finance, banking, consumer goods and more.
“India is an extraordinary investment opportunity and a central part of the ecommerce and digitalization growth story in emerging and frontier markets beyond China. You can think of this opportunity as ‘the next billion’ as India’s population gets affordable access to the internet for the first time via smartphones, changing the way people shop for food, clothing, access entertainment, do their banking, learn, and more,” said Carter. “India is also home to some of the most innovative ecommerce companies, like fintech leader PAYTM, and Zomato, a food delivery app, and we’re seeing young bright entrepreneurs lead the charge as they are creating IPOs with $16 billion in total valuations.1” INQQ holds 5.6% of its net assets in PAYTM and 4.6% in Zomato as of 4/06/2022. *Holdings are subject to change.
Carter notes that, “in addition to the entrepreneurs and the technology that is being created and introduced in India, there is major support from the Indian Government. India’s President Modi introduced the ‘Digital India’ campaign in 2015 with the aim to have a trillion-dollar online economy by 2025 and improve the infrastructure needed to digitally empower the country.” “Furthermore, India’s efforts at demonetization continue to encourage fintech development and mobile banking. With a population of 1.3 billion people and the largest Gen Z population in the world, the Indian growth opportunity is large,” Carter adds.
“India is the third largest economy and fastest growing major economy on the globe, and we’re excited to offer investors the first targeted approach to tap into this rapid ecommerce and digitalization story of India.” Says, Carter.
INQQ seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index (https://inqqetf.com/index/). All securities eligible for inclusion must generate over 50% of revenue from internet and/or ecommerce in India, have a minimum market cap of $300mm, and a liquidity screen of $1.0mm average daily turnover. The Index has a market cap weighting with an 8% maximum position and rebalances semi-annually.
Introducing EMQQ GLOBAL
In tandem with the launch of INQQ, Carter and team announce they’ve rebranded from Big Tree Capital, LLC to EMQQ Global, LLC.
“Since 2014 when we launched our flagship fund EMQQ, there’s been momentous and meaningful development in the ecommerce and internet sector with billions more people coming online, innovative companies emerging, and the consumer class increasing,” says Carter. “We introduced our ex-China version of EMQQ, ‘FMQQ’, last year to offer a diversified approach, and now as we continue to build out our product lineup with INQQ and a number of other ideas we have under development, our rebrand to ‘EMQQ Global’ better represents our expertise in the space as we continue to capture the scale and progression of the global opportunities in these markets.”
“By 2030, the global middle class is expected to swell to 5.5 billion people, with consumption in emerging markets totaling $30 trillion—close to half of the global total. With nearly 90% of the world’s population under the age of 30 living in emerging and frontier economies, there is still a long way for this story to go. For investors seeking exposure to the long-term growth in Emerging Markets, we continue believe this sector remains the best way to go,” added Carter.
For more information on EMQQ Global and all its ETF offerings, please visit: www.EMQQglobal.com
About EMQQ Global
EMQQ Global is an index, advisory, and research company wholly focused on helping investors capture the unique opportunities of fast-growing Internet and Ecommerce companies in Emerging and Frontier Markets.
Important disclosures
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting http://www.inqqetf.com/. Read the prospectus carefully before investing.
Risk Disclosures:
There is no guarantee that the Fund or the index will achieve its investment objective. Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The Fund is non-diversified. Investing in India may involve the risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in India as well as increased volatility and lower trading volume. Certain restrictions on foreign investment may decrease the liquidity of the Fund’s portfolio, subject the Fund to higher transaction costs, or inhibit the Fund’s ability to track the Index. The Fund’s investments in securities of issuers located or operating in India may be limited or prevented, at times, due to the limits on foreign ownership imposed by the Reserve Bank of India (“RBI”).
The Fund is registered as a foreign portfolio investor (“FPI”) with the Securities and Exchange Board of India (“SEBI”) in order to have the ability to make and dispose of investments in Indian securities. There can be no assurance that the Fund will qualify or continue to qualify as an FPI, or that the Indian regulatory authorities will continue to grant such qualifications, and the loss of such qualifications could adversely impact the ability of the Fund to make and dispose of investments in India.
The Fund invests in the securities of Internet Companies, including internet services companies and internet retailers, and is subject to the risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund’s investments.
There is no guarantee that the Fund or the index will achieve its investment objective.
Exchange Traded Concepts, LLC serves as the investment advisor and EMQQ Global serves as the Administrator of the Fund and the Index Provider. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), 1 Freedom Valley Drive, Oaks PA 19456, which is not affiliated with Exchange Traded Concepts, LLC or EMQQ Global.
1 CBInsights, Aug 2021
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