December 1, 2025
Investing in the Digitization of EM (ex-China)
FMQQ provides broad exposure to the Internet and e-commerce sectors of Emerging Markets, excluding China. While the growth of the U.S. and China internet sectors represented the first and second waves of the global digital revolution, we believe that the countries within the FMQQ index represent a third wave. FMQQ aims to capture this consumer story by providing investors with a simple, cost-effective way to gain exposure to the digitization of Emerging Markets ex-China.
5 Reasons to Invest in EM Tech ex-China
- Massive Population: 4x the population of China
- Unique Tech Landscape: Consumers are skipping computers and going straight to smartphones
- Swelling middle-class rapidly adopting digital consumption
- Soaring Internet Adoption, first-time access via smartphones
- Exposure to innovative, lesser-known global companies
FMQQ = The Next Wave of Growth
The FMQQ Index is a modified market cap-weighted index with the largest positions capped at 8% during the semi-annual reconstitution and rebalanced in June & December.
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Country Weightings
- INDIA44.78%
- BRAZIL23.28%
- INDONESIA12.41%
- SOUTH KOREA11.91%
- KAZAKHSTAN4.52%
- POLAND3.14%
- SOUTH AFRICA0.98%
FMQQ Company Spotlights
NUBANK
The Chime of Brazil, NU is one of the world's largest digital banking platforms.
MERCADO LIBRE
The Amazon of Latin America, MELI is a massive online commerce and payments company.
PAYTM
The Paypal of India, Paytm is a fintech company, focused on digital payments & financial services.
SEA LTD
The Amazon of Southeast Asia, SE is a leading global consumer internet company.
EM Tech ex-China Investment News
Our Investment Strategies
We provide investors exposure to the rise of the smartphone-enabled emerging markets consumer. Our strategies capture the Great Confluence of 3 mega trends: a swelling middle class producing 6 billion new consumers, first-ever access to smartphones, and first-ever access to internet via mobile. Through three strategies, investors can tailor their exposure to what McKinsey & Co. call the “biggest growth opportunity in the history of capitalism.”