Emerging Markets Consumer ETF
Emerging markets are upcoming countries and economies. A rising consumer spending power is one of the common traits of an emerging market. It is almost a 100% guarantee to be exactly.
As a result companies that deliver goods and services to consumers profit simultaneously. But rising sales are just one part of the story. When spending power is on the move consumers are more and more interested in buying more expensive products with higher margins for the suppliers or manufacturers.
This will put the turbo on this Emerging Markets consumer ETF: more sales + higher margins! Another advantage is that when consumers are getting used to all this new luxury they do not want to settle for less, only more.
When temporary setbacks in the economy occur people tend to keep on buying the products they are used of. They are using savings or private loans to sustain their accustomed life. This makes this industry a low-risk one although it may be impacted during long periods of decline.
Columbia Emerging Markets Consumer ETF
This Columbia Emerging Markets Consumer ETF tracks The Dow Jones Emerging Markets Consumer Titans 30 Index. The spread among consumer goods and services is almost 50/50, so this is well-balanced.
30 stocks are included in this Emerging Markets ETF divided among 11 emerging countries. The largest 2 countries are South Africa and China with a share of 20% each. Then Mexico follows with 15% and Brazil with 12%.
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Columbia Emerging Markets Consumer ETF info:
ETF provider: Columbia
Ticker: ECON
ISIN: US19762B5093
Currency: Dollar
Exchange: NYSE Arca