ETF Research Center

The Emerging Markets Internet and Ecommerce ETF is an exchange-traded fund incorporated in the USA. The Fund tracks the performance of the Emerging Markets Internet Index� by targeting companies whose primary business is e-commerce or Internet-related activities that generate most of their revenues in emerging market countries.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Exchange Traded Concepts LLC
Website	www.exchangetradedconcepts.com
Inception date	Nov 13, 2014
Assets (mns)	$442
Currency	USD
Expense ratio	86 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Statutory Trust
Custodian	Bank of New York Mellon
Weighting	Market Cap
Index replication	Optimized
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	77
Wgt avg mkt cap (mns)	$104,826
Large cap (>$10bn)	77.8%
Mid cap ($2-10bn)	17.2%
Small cap (<$2bn)	3.3%
Developed mkts	26.2%
Emerging mkts	73.8%

TOP TEN HOLDINGS
Total	59.7 %
TENCENT HOLDINGS LTD	8.0 %
ALIBABA GROUP HOLDING LTD. SPONSOR	7.9 %
NASPERS LTD-N SHS	7.2 %
MERCADOLIBRE INC	6.6 %
PROSUS N.V. CLASS N	5.7 %
MEITUAN DIANPING	5.6 %
BAIDU INC - SPON ADR	5.4 %
JD.COM INC-ADR	4.7 %
NHN CORP	4.4 %
NETEASE.COM INC-ADR	4.3 %

TOP COUNTRY EXPOSURE
	CHINA	56.1 %
	SOUTH KOREA	8.2 %
	SOUTH AFRICA	7.9 %
	ARGENTINA	6.7 %
	BRAZIL	4.0 %
	NETHERLANDS	2.9 %
	GERMANY	2.2 %
	SINGAPORE	1.4 %
	CYPRUS	1.2 %
	INDIA	0.8 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
33.9%	33.9%	9.9%	--	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.36	56%
MSCI EAFE	1.63	66%
MSCI Emg. Mkts.	1.30	73%

Technical Indicators
Recent close	$38.13
30d moving avg.	$35.72
Annualized volatility	21.9%
Short interest (ETF)	0.1%
Relative strength (RSI)	77

Liquidity measures
Avg. volume (thou.)	66
Turnover	0.6%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$6,725

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Emerging Markets Internet & E-Commerce ETF based on the alternatives' overlap in portfolio holdings with EMQQ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

EMQQ

Expense:

86 bp

ALTAR Score™:

3.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH EMQQ
Ticker	Fund Name	Overlap¹ vs EMQQ (%)	Expense ratio (bp)	Savings vs EMQQ (bp)	ALTAR Score™ (%)	ALTAR vs EMQQ (%)
FDNI	First Trust Dow Jones International Internet	63.6	65	21	3.8	+0.5
KWEB	KraneShares CSI China Internet	55.7	76	10	3.5	+0.3
KEMQ	KraneShares EM Consumer Focus	43.9	80	6	8.3	+5.1
TTTN	TigerShares China-U.S. Internet Titans	43.5	59	27	3.6	+0.4
PGJ	Invesco Golden Dragon China	39.3	70	16	3.2	-0.0
CQQQ	Invesco China Technology	37.7	70	16	4.6	+1.4
FNI	First Trust ISE Chindia	36.0	59	27	3.6	+0.4
CXSE	WisdomTree China ex-State Owned Enterprises	33.6	32	54	6.2	+3.0
SOCL	Global X Social Media	31.2	65	21	3.8	+0.6
PNQI	Invesco Nasdaq Internet	29.3	62	24	2.4	-0.8
PLAT	WisdomTree Modern Tech Platforms	28.2	45	41	2.7	-0.6
ECON	Columbia Emerging Markets Consumer	28.0	59	27	5.0	+1.8
CHIL	Global X MSCI China Large-Cap 50	26.0	29	57	9.3	+6.1
FLCH	Franklin FTSE China	25.9	19	67	8.6	+5.3
DINT	Davis Select International	25.5	75	11	5.2	+2.0
GXC	SPDR S&P China ETF	25.1	59	27	8.1	+4.9
EBIZ	Global X E-commerce	25.0	68	18	2.5	-0.8
EEB	Invesco BRIC	25.0	64	22	6.1	+2.9
GIGE	SoFi Gig Economy	24.8	59	27	0.3	-2.9
CHIQ	Global X MSCI China Consumer Discretionary	24.6	65	21	4.7	+1.5

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Emerging Markets Internet & E-Commerce
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.4	%
Divided by: Fwd. P/BV	3.8	x
Less: Expense ratio	86	bp
Equals: ALTAR Score	3.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.25	CATEGORY AVERAGE	1.48

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.