- EM-based internet firms can leverage the long-run secular tailwinds in their markets.
- EMQQ has an outstanding risk-adjusted return track record and still offers solid earnings potential.
- EMQQ is one of the priciest EM-focused ETFs around and the income component is dire.
- The price action no longer looks overstretched but valuations are still pricey.
- Regulatory risk in China doesn’t look like it is going away any time soon and will weigh heavily on EMQQ given 62% exposure to that region.
For further details see:
Emerging Markets Internet & Ecommerce ETF: The Good And The Bad