Latin America is poised for a boom in online shopping and e-commerce due to coronavirus restrictions, according to HANetf.
The white-label ETF specialist says the coronavirus pandemic is driving consumer behaviour online at an accelerated rate in emerging markets.
Demographics and regions that have remained slow or even resistant to adopting a more digitized lifestyle seem to have relented and started to convert, it adds.
“In Latin America, only 34% of consumers under the age of 15 buy goods online, compared to the 74% in the UK and just over 60% in China,” said Kevin T. Carter, Founder & CIO of HANetf’s Emerging Markets and Ecommerce UCITS ETF (EMQQ).
“This adoption gap is closing fast however as the virus has created an extra incentive and catalysing growth.”
Coronavirus could have the same effect on the region’s e-commerce sector that SARs did on China’s in the early 2000s, Says Carter.
At present in Latin America, online retail sales only account for 5% of total sales, but this is expected to surge to 25% in one decade, he says.
EMQQ, which is listed on the LSE, XETRA, and Borsa Italiana, has delivered a 12-month return of 36.4% between 1 June 2019 and 31 May 2020.
The ETF has added nine new constituents and removed three as part of its semi-annual rebalancing, said Carter.
EMQQ holds the number one spot for all emerging market ETFs over one year, three years and five years, according to Bloomberg.