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Emerging Markets Consumer

Emerging Markets Consumer

5.21k followers22 symbols Watchlist by Motif Investing

Growing middle-class income could mean increased spending on consumer products and services in emerging markets.

Curated by Motif Investing

Background

Emerging markets have 70% of the world's population but account for only 35% of global GDP. That's about to change as increasing population growth and urbanization equals a growing middle class population in these countries. Consumer spending in developing countries is expected to grow three times faster than in developed nations, reaching $6 trillion by 2020.

This impending demographic shift could benefit companies that serve this new class of consumers, who will expand by 3 billion over the next two decades. With higher incomes, spending on necessities like food and apparel, as well as on discretionary items such as automobiles and travel, stands to grow in the long run. And that could drive outperforming growth for companies and provide a lift to a wide array of emerging market stocks. Still, there is no certainty within emerging markets, which carry unique risks to keep in mind, including political and economic risks.

How did we choose these stocks?

We identified US-listed stocks and American Depository Receipts of companies that are engaged in activities relevant to this watchlist's theme. We then filtered out companies that have a share price of less than $1.00 or a market capitalization less than $100 million, and excluded illiquid stocks by screening companies for liquidity i.e. average bid-ask spreads, dollar volume traded etc. Finally the proprietary Motif Optimization Engine determined the constituent stocks. Learn more about how we select our watchlists.

Who made these selections?

Motif is an online brokerage built on thematic portfolios of up to 30 stocks and ETFs. Founded in 2010 by Hardeep Walia, Motif combines complex proprietary algorithms with skilled advisers to develop these thematic portfolios. Learn more about our team.

How are these weighted?

First, we determined each company's percentage of total revenue derived from this watchlist's theme. Second, we applied a pure-play factor to give greater relative weight to companies that derive a higher percentage of their revenue from this theme. Finally, we weighted each company by its market capitalization adjusted for revenue exposure to the theme.

More details on how we build and weight watchlists are available here.

Performance

WatchlistChange today1-month return1-year returnTotal return
Emerging Markets Consumer+0.18%+236.58%-23.60%-0.24%
^GSPC-0.08%-3.45%+11.67%+3462.12%

22 symbols

SymbolCompany nameLast priceChange% changeMarket timeVolumeAvg vol (3-month)Market cap
BABAAlibaba Group Holding Limited276.44+1.15+0.42%9:57 am GMT-41.05M15.47M742.61B
KOThe Coca-Cola Company49.615-0.04-0.09%9:57 am GMT-4918.19k15.42M213.12B
JDJD.com, Inc.76.19+1.19+1.59%9:57 am GMT-42.08M12.02M118.23B
NTESNetEase, Inc.479.365-4.92-1.01%9:57 am GMT-450.30k634.15k65.18B
CLColgate-Palmolive Company75.91-0.16-0.21%9:57 am GMT-4250.89k3.29M65.09B
EDUNew Oriental Education & Technology Group Inc.152.36-0.52-0.34%9:57 am GMT-470.80k989.07k24.24B
YNDXYandex N.V.66.95+0.89+1.35%9:57 am GMT-43.21M3.55M23.44B
VIPSVipshop Holdings Limited17.24+0.05+0.29%9:57 am GMT-4294.18k6.97M11.65B
WUBA58.com Inc.55.88+0.18+0.32%4:00 pm GMT-48.78M1.75M8.38B
TTMTata Motors Limited9.02-0.09-0.99%9:56 am GMT-4367.57k1.91M5.94B
LPLLG Display Co., Ltd.6.86+0.01+0.15%9:52 am GMT-45.76k380.36k4.93B
CBDCompanhia Brasileira de Distribuição13.44-0.21-1.54%9:53 am GMT-420.47k400.91k3.62B
TVGrupo Televisa, S.A.B.6.15-0.08-1.28%9:57 am GMT-469.09k1.77M3.47B
CROXCrocs, Inc.44.01+0.15+0.34%9:56 am GMT-4135.25k1.24M3.14B
HTHTHuazhu Group Limited44.51+2.74+6.56%9:57 am GMT-4741.84k2.22M1.82B
MMYTMakeMyTrip Limited17.62-0.27-1.51%9:57 am GMT-434.38k454.50k1.82B
TUPTupperware Brands Corporation25.915-0.83-3.12%9:57 am GMT-4129.76k3.38M1.27B
GOLGol Linhas Aéreas Inteligentes S.A.6.58-0.09-1.35%9:56 am GMT-4149.82k1.61M1.16B
YRDYiren Digital Ltd.2.79+0.05+1.82%9:56 am GMT-418.78k138.75k262.95M
JMEIJumei International Holding Limited19.93-0.01-0.05%4:02 pm GMT-481.88k81.88k227.59M
WBAI500.com Limited2.97--3:59 pm GMT-48066.05k127.71M
SFUNFang Holdings Limited11.14+0.02+0.18%9:30 am GMT-410214.48k99.97M
  • Savvy Investors Will Do This With Coca-Cola Stock Before 2021
    Motley Fool

    Savvy Investors Will Do This With Coca-Cola Stock Before 2021

    Coca-Cola (NYSE: KO) stock has remained a steady, profitable, long-term investment for as long as anyone can remember. Amid worldwide saturation, cola wars, and wars against soft drinks themselves, the consumer staples stock continues to deliver returns, although perhaps at a somewhat slower pace than in decades past. Coca-Cola stock has delivered considerable returns over the last 100 years.

  • Thailand Holds Rate at Record Low, Spotlight on Fiscal Steps
    Bloomberg

    Thailand Holds Rate at Record Low, Spotlight on Fiscal Steps

    (Bloomberg) -- The Bank of Thailand held its benchmark interest rate unchanged for a third straight meeting to save its limited policy space, allowing fiscal policy to take the lead in reviving an economy headed for its worst annual performance ever.The central bank kept the policy rate unchanged Wednesday at 0.5% in a unanimous decision, after lowering rates three times earlier this year. All 22 economists in a Bloomberg survey predicted the hold.The pandemic has devastated two of Thailand’s main growth drivers, tourism and trade. The government has responded with a series of stimulus measures, including a $2.2 billion program of cash handouts and co-pay programs approved this week to boost consumption and jobs.In a briefing after the decision, Assistant Governor Titanun Mallikamas said central bank policy remained accommodative but fiscal policy should be the driving force in a recovery, focusing on jobs and economic restructuring.“Going forward, government policies from various agencies needed to be more targeted and timely,” he said.The central bank revised up its growth forecast for this year, predicting a 7.8% contraction compared with a previous projection of an 8.1% decline. It cut next year’s forecast to 3.6% growth from 5% previously, citing fading expectations for a tourism revival.“There’s a concern that without more fiscal measures, the economy will be worse.” said Komsorn Prakobphol, a senior strategist at Tisco Financial Group Pcl in Bangkok. “There’s a limitation for any aggressive monetary policy with the interest rate already at a very low level.”The baht fell as much as 0.6% against the dollar to its lowest level since Aug. 25, before recovering slightly to 31.509 to the dollar as of 3:25 p.m. in Bangkok. The benchmark SET Index of stocks fell 0.2%.In TransitionThailand will undergo a transition in fiscal and monetary policy leadership over the next few months. Governor Veerathai Santiprabhob is leaving the central bank at the end of this month when his five-year term expires, handing over to Sethaput Suthiwart-Narueput, a member of the Monetary Policy Committee. The government also is seeking a replacement for Finance Minister Predee Daochai, who resigned in early September after less than a month in the position.Tim Leelahaphan, an economist at Standard Chartered Plc in Bangkok, said the central bank will likely have to cut the key rate by 25 basis points in the fourth quarter, as the government has limited ability to boost the economy via fiscal measures.“The fiscal policy outlook is in doubt after the recent resignations of two successive finance ministers; it remains unclear who will fill the position,” he said. “The political situation could pose an additional risk to the economy, given ongoing protests.”Veerathaisaid in a recent interview that the central bank has been studying unconventional policy steps such as yield-curve control, but doesn’t think they’re needed right now. While all options, including interest-rate cuts, remain on the table, targeted policies that get funds to the sectors that need them can be most effective, he said.Other key points from the decision and briefing:It will take two years for the economy to return to its pre-pandemic levelThe MPC will assess the need for any fresh steps in the FX market, as a possible rebound in the baht could affect the economic recoveryThe bank raised its inflation forecast for this year, to -0.9% from -1.7% in June, and for 2021 to 1% from 0.9%The bank raised its 2020 export forecast -- now expecting an 8.2% contraction versus -10.3% in June -- while maintaining its 2021 forecast at 4.5% export growthThe forecast for tourist arrivals this year was lowered to 6.7 million, from 8 million in June. Next year’s forecast was lowered to 9 million from 16.2 million(Adds analyst comment in seventh paragraph, updates market levels in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.