What is the EMFQ ETF ?

EMFQ ETF : Overview

The EMFQ ETF, short for Emerging Market and Frontier Market Fintech ETF, is a financial instrument that offers investors exposure to equity securities issued by emerging market and frontier market companies deriving at least 50% of their revenue from financial technology (Fintech) operations. The ETF employs an indexing investment approach, attempting to replicate the performance of the underlying index before accounting for fees and expenses. The fund is managed by Penserra Capital Management LLC, with EQM Indexes LLC as the index provider and Solactive AG responsible for its calculation and publication.

EMFQ ETF Underlying and Exposure: What Does It Track and How?

The underlying index of the EMFQ ETF was designed and is maintained by EQM Indexes LLC. It measures the performance of equity securities, including common stock and depositary receipts, issued by companies in emerging market and frontier market countries. The index includes companies domiciled in countries such as Argentina, Brazil, India, Indonesia, Saudi Arabia, and Turkey, among others.
To be eligible for inclusion in the index, companies must meet specific criteria. They must have a market capitalization of at least $100 million and a six-month daily average value traded of at least $1 million. Additionally, these companies must generate at least 50% of their revenue from Fintech operations, which encompasses activities like payments, digital banking, lending, insurance, investments, and digital assets related to cryptocurrencies.
The index follows a global market capitalization approach, with companies classified into emerging market countries and frontier market countries. It also has certain limitations on the representation of companies from specific regions to ensure diversification.

EMFQ overlap What is the EMFQ ETF ?

EMFQ ETF: Benefits to Invest in This ETF

The EMFQ ETF offers several advantages for investors seeking exposure to the growing Fintech sector in emerging and frontier markets. Here are some key benefits:
Diversification: The ETF provides exposure to a diversified portfolio of Fintech companies across various emerging and frontier markets. This diversification can help mitigate risks associated with investing in individual companies or countries.
Growth Potential: The Fintech industry in emerging and frontier markets has shown significant growth potential. As these regions embrace digitalization and technology-driven solutions, Fintech companies are well-positioned to capitalize on new opportunities.
Focused Exposure: The ETF's focus on Fintech companies ensures that investors are investing in businesses at the forefront of technological innovation in the financial sector.
Professional Management: With Penserra Capital Management LLC as the investment sub-adviser, investors can rely on professional management and expertise in navigating the complexities of emerging and frontier markets.

EMFQ ETF : Considerations Before Investing

While the EMFQ ETF offers attractive opportunities, potential investors should be aware of certain considerations before making investment decisions:
Emerging Market and Frontier Market Risks: Investing in emerging and frontier markets involves higher risks, including political instability, currency fluctuations, and limited liquidity.
Sector-Specific Risks: The ETF's focus on Fintech companies exposes investors to risks specific to the technology and financial sectors, such as regulatory changes, cybersecurity threats, and competitive pressures.
Market Performance: Like any investment, the performance of the ETF is subject to market conditions and economic factors that may affect the overall performance of the Fintech industry.
Diversification: While the ETF aims to provide diversification, it may still have exposure to specific regions or sectors, which can impact its overall risk profile.

Conclusion

The EMFQ ETF offers a compelling opportunity for investors seeking exposure to the promising Fintech industry in emerging and frontier markets. It provides diversification and focuses on companies that are at the forefront of financial technology innovation. However, investors should carefully assess the risks associated with investing in emerging and frontier markets, as well as the specific risks related to the Fintech sector, before making any investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or any form of recommendation. It does not offer any investment advisory services. Investors should conduct thorough research and seek professional advice before making investment decisions.

EMFQ ETF issuer
EMFQ ETF official page

EMFQ quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the EMFQ Amplify Emerging Markets FinTech ETF, access our dedicated page now.

Get started