Most of the commentary so far has been bearish on emerging markets, and no more so than Jeff Gundlach of DoubleLine Capital saying the sector could fall by another 40 percent. Still, there’s a lot of great ETFs that look into the emerging markets space. The better way to play emerging markets is through the young consumers, which make up the vast majority of the emerging markets world.
Here’s a few of my favorites:
- Kraneshares CSI China Internet (KWEB), which invests in publicly traded Chinese companies whose primary business is Internet-related: Alibaba, Tencent Holdings, Baidu, JD.com, Qihoo, etc. The advantage of this fund is that it invests in publicly traded Chinese companies wherever they are traded, so they get exposure, for example, to Alibaba, which lists only in the U.S. and is left off of other Chinese indexes.
- EGShares Emerging Markets Consumer ETF (ECON) invests in emerging markets consumer companies: Brazilian beer giantAmbev, India’s Tata Motors, Mexican beverage producer Fomento Economico, and Mexican TV producer Grupo Televisa. The only downside is the relatively small size of the holdings, at only 30 companies.
- Emerging Markets Internet & Ecommerce ETF (EMQQ) is similar to KWEB but broader, investing not just in Chinese e-commerce but also South Korea, South Africa, Russia and Brazil.
- [“source -pcworld”]