The coronavirus outbreak has caused significant amount of outright pessimism among most market participants, leading to share price declines across nearly all sectors. For long-term investors, determining which companies represent excellent value at these levels (or individual sectors for that matter) can be a lucrative opportunity for those willing to take the near-term risk for higher longer-term potential rewards.
One such sectors I like right now at these depressed levels is the e-commerce sector, a sector which will continue to march ever higher despite what the stock market is doing.
For investors, like me, that want exposure to this broad secular trend but don't want high levels of exposure to a particular company, I'd recommend an excellent Exchange Traded Fund (ETF) that focuses on the secular growth trend, but on companies located in emerging markets, providing another growth layer to the equation.
The emerging markets Internet & E-Commerce ETF (NASDAQ: EMQQ) is a U.S.-based ETF (i.e. it would require U.S. dollars for Canadian Investors) that has one of the best compositions of any ETF out there that I could find in this space.
Long-term growth, particularly in sectors such as I.T. or E-commerce, especially in high growth markets such as emerging economies around the globe, will never be cheap. That said, the market turmoil we've all experienced could provide this the price dislocation a value investor might otherwise need to jump into this broad-based ETF.
Right now, the EMQQ is on my watch list, and I will be keeping an eye on this fund in the coming weeks. I suggest investors to do the same.
Invest wisely, my friends.
