New ETF on emerging market internet stocks launches with Alibaba
November 14, 2014 8:44 am
A new exchange traded fund that focuses on internet based companies from developing nations was launched today allowing US traders to invest in Alibaba and 41 other stocks.
The Exchange Traded Concepts has just made available its Emerging Markets Internet and E-Commerce ETF that monitors the performance of the likes of Alibaba Group Holding Ltd., China’s biggest online retailer who recently had a record breaking IPO, MercadoLibre Inc. from Argentina, and Naspers LTD from South Africa.
The new ETF is based on a previous index offered by Big Tree Capital LLC whose level increased by 231% from June 2009 and September 2014, the same period when Vanguard’s FTSE Emerging Markets ETF, the largest fund that monitors developing countries, gained 49%.
Funds based in the US have initially encountered trouble when trying to include stocks similar to Alibaba which trades exclusively in New York despite having its headquarters in Hangzhou, China. 31 of the new ETF’s companies are backed by venture capital firms in the US, the same number as those based either in the Nasdaq Stock Market or the New York Stock Exchange.
Found Kevin Carter of Big Tree Capital says that, “The indexes used by the biggest emerging markets ETFs have lots of differences from the index tracked by EMQQ. They hold hundreds of state-owned companies including massive banks and oil companies, while most of Internet and e-commerce companies are excluded.”
Data compiled by Bloomberg shows that asset managers in the US have so far raked in $607 million from equity ETFs that focus on emerging markets.
The material has been provided by InstaForex Company – www.instaforex.com
A new exchange traded fund that focuses on internet based companies from developing nations was launched today allowing US traders to invest in Alibaba and 41 other stocks.
The Exchange Traded Concepts has just made available its Emerging Markets Internet and E-Commerce ETF that monitors the performance of the likes of Alibaba Group Holding Ltd., China’s biggest online retailer who recently had a record breaking IPO, MercadoLibre Inc. from Argentina, and Naspers LTD from South Africa.
The new ETF is based on a previous index offered by Big Tree Capital LLC whose level increased by 231% from June 2009 and September 2014, the same period when Vanguard’s FTSE Emerging Markets ETF, the largest fund that monitors developing countries, gained 49%.
Funds based in the US have initially encountered trouble when trying to include stocks similar to Alibaba which trades exclusively in New York despite having its headquarters in Hangzhou, China. 31 of the new ETF’s companies are backed by venture capital firms in the US, the same number as those based either in the Nasdaq Stock Market or the New York Stock Exchange.
Found Kevin Carter of Big Tree Capital says that, “The indexes used by the biggest emerging markets ETFs have lots of differences from the index tracked by EMQQ. They hold hundreds of state-owned companies including massive banks and oil companies, while most of Internet and e-commerce companies are excluded.”
Data compiled by Bloomberg shows that asset managers in the US have so far raked in $607 million from equity ETFs that focus on emerging markets.
The material has been provided by InstaForex Company – www.instaforex.com
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