This is a thematic ETF that tracks, one-to-one, an index of internet and e-commerce companies in emerging markets. It includes, on a market-capitalization basis, companies in emerging economies that generate most of their revenue or assets from online businesses, and it applies a cap on the weighting of any single country.

It suits growth-oriented, long-term investors who want to diversify into the growth of digital consumption in emerging markets.

It is a passively managed (index-tracking) ETF run by Exchange Traded Concepts Trust.

Under the index rules, the fund includes companies headquartered in emerging markets that earn a majority of their revenue or assets from the internet and e-commerce. To prevent concentration in a single country, it caps the weighting of specific countries such as China, and index construction involves screening against certain social and environmental criteria.

• Thematic exposure specialized in emerging-market internet and e-commerce
• Greater diversification through country weighting caps

Assets under management (AUM) stand at $221.2M, and the Expense Ratio is 0.86% per year.

Compared with KWEB and CQQQ, which concentrate on China, this ETF spreads its exposure across several emerging markets, but its fee burden is somewhat high, as is typical for thematic ETFs.

As an emerging-market growth play, it reacts sensitively to global risk appetite and the dollar, and it has shown large swings depending on China's regulatory environment and emerging-market currency moves. There are also periods when it moves in a different direction from developed-market indexes.

Fund flows fluctuate with investor sentiment toward the emerging-market digital growth theme, and in risk-off phases money tends to leave alongside emerging-market equities as a whole. Expectations for Chinese policy are a major variable for fund flows.

Its strengths are exposure to emerging-market digital growth and country diversification, while its weaknesses are high volatility and currency and regulatory risk.

Alternatives with the same emerging-market internet theme but a China focus include KWEB and CQQQ, and the comparison table also lists China consumer fund CHIQ and China healthcare fund KURE, all of which have stronger single-country exposure. India consumer fund INCO likewise differs in being a single-country theme. To invest across a broader range of emerging markets, you can also consider a broad emerging-market ETF such as VWO, FXI to focus on Chinese large caps, or INDA for exposure to India's growth.

Here are the points to review before investing in EMQQ. Because it is a thematic emerging-market ETF, its volatility, country concentration and currency exposure tend to be larger than those of a typical core ETF, so you should confirm your own risk tolerance and its weighting within your portfolio before buying.

Emerging-market regulation, currency moves and shifts in risk appetite are the main drivers of short-term volatility. In global risk-off phases, the fund can suffer sharp corrections along with emerging-market equities as a whole, so position sizing is important.

This ETF is worth considering for investors who want thematic exposure to emerging-market digital growth. It is advisable to decide after comparing it with KWEB and CQQQ if you want China concentration, or VWO and similar funds if you want broader emerging-market diversification.