When I think about putting a portfolio together that I hope will be around in 10 years or more, one of the questions I ask is: will investors still be excited about the same growth story then? A different, but similar, question I ask is: is this a company I’d invest for my grandchildren in a theoretical trust fund?
For the Emerging Markets Internet and E-commerce ETF (NASDAQ:EMQG), the answer to both questions is “yes”.
There are a number of characteristics I like about this ETF that contribute to my optimism about this fund as a long-term, passive investment vehicle.
The first characteristic I like is the fact that this ETF focuses on emerging markets for technological growth. Mature markets in North America and Europe are inundated with technology options and in some sub segments, true saturation is already taking place.
Emerging markets are, geographically, the place to go for growth. In terms of internet and e-commerce, this sentiment is amplified.
Additionally, even in mature, saturated markets, there seems to be a powerful secular growth trend which ignores the typical boundaries of finance. In other words, the pie is growing, making every slice bigger. This fact serves all companies well, particularly those with an emerging markets focus.
Long-term investors ought to consider ETFs like these in times like these. When equities sell off broadly and indiscriminately, this ETF is one I'd advise long-term holders add to their watch list.
Invest wisely, my friends.
