Emerging Market Internet ETF Gets Dented by U.S.-China Trade War

The MQQ ETF focuses on Internet and ecommerce companies in emerging markets, with a significant allocation to China's Internet sector, comprising 60% of the fund. Other countries like South Korea, South Africa, Argentina, and Russia also contribute to its portfolio. Despite outperforming the broader market in 2016 and 2017, MQQ faced a 25% decline due to tariffs on Chinese technology. The fund, with a market cap limit of 8% per security, includes major players like Alibaba and Tencent. It has an 87% active share, indicating significant exposure outside the broader EM index, and exhibits double the volatility. MQQ holds $300 million in assets, has a high expense ratio of 86 basis points, and is rated positively by Bloomberg.

What is the primary focus of the MQQ ETF?

• Internet and ecommerce companies in emerging markets

• Global technology companies

• American retail companies

• European financial institutions

Which country constitutes the largest portion of the MQQ ETF?

• Russia

• Argentina

• China

• South Korea

What was a significant factor in MQQ's decline in 2018?

• A decrease in global ecommerce sales

• Tariffs on technology from China

• A rise in interest rates

• Increased competition from European markets

What is the active share percentage of MQQ?

• 87%

• 95%

• 60%

• 75%

What is the expense ratio of the MQQ ETF?

• 120 basis points

• 100 basis points

• 86 basis points

• 50 basis points