HANetf and EMQQ to launch ex-China Frontier Markets ETF to capture potential growth of Indian and LATAM e-commerce

10 January 2022

  • A new emerging markets ETF is offering exposure to e-commerce and internet companies in developing markets with a very noticeable exception: China.

  • An attractive alternative for investors who want to capture the potential opportunities in the fast-growing ecommerce and internet sector in Emerging and Frontier markets of Asia, Africa, Latin America, and Eastern Europe

11th January 2022, London

HANetf and Kevin T. Carter, the founder of EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (ticker: EMQQ) , one of the largest and best-performing emerging markets ETFs over the last three years ending 20 July 2021, [1] has announced the launch of the second exchange traded fund: the FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (Ticker: FMQQ) on London Stock Exchange, Deutsche Börse, Borsa Italiana and Euronext Paris on 11 January 2022.

The Frontier Markets ETF will provide investors with targeted exposure to the non-Chinese companies that are in our Emerging Markets ETF which has just celebrated its third anniversary in Europe.

The Frontier Markets ETF seeks to harness the incredible growth potential of Internet and Ecommerce companies in Frontier and Emerging Markets economies other than China such as India, Brazil, Mexico, Russia, Turkey, Nigeria, and Indonesia. 

Due to the great confluence of smartphones, the internet, and a growing consumer class, new companies and apps are emerging around the world. Thanks to this new young consumer class they are leapfrogging traditional shopping and creating new consumer consumption trends. 

The Frontier Markets ETF currently is comprised of 60 names, including top holdings such as MercadoLibre of Argentina; Sea Limited, a Singaporean “super app”; Zomato, an Indian food delivery app; and Jumia, which has been called the “Amazon of Africa”. All companies in the FMQQ Index are drawn from the three major regions of Asia, Latin America, and EMEA (Europe, Middle East, and Africa).

Kevin T. Carter, Founder and CEO of EMQQ ETF, said: “We launched  our Emerging Markets ETF in 2018 on LSE with the conviction that internet and e-commerce companies in the developing world represented the best way to capture the real growth of emerging markets – the emerging markets consumer – and we’ve been right. 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. [2]

“China’s ecommerce market is now four times larger than the rest of the emerging markets ecommerce space combined , so it is important that investors have tools at their disposal that allow them to build an emerging markets portfolio with as much, or as little, China exposure as they may want,” added Carter. [3] “We believe the Frontier Markets ETF 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 said “We are delighted to launch the Frontier Markets ETF alongside its sister product, the Emerging Markets ETF, on the HANetf platform.  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.”


Learn more about our Frontier Markets ETF

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