Invest in emerging Internet companies even before IPOs

I guess everyone knows the huge success of Alibaba (BABA) and understand how powerfully Internet has changed our life forever! I’m also sure everyone, including myself would wish if we could ride this megatrend as far as we can and could even invest in those burgeoning early stage Internet companies before their IPOs. Well, there is a possibility for you to do so, if you are brave enough. I found a new ETF, which is focusing on just such Internet companies, also including many early stage ones that may turn out to be super stars like Alibaba later. The ETF is called Emerging Markets Internet & Ecommerce (EMQQ). As you can see below, it has put money mostly in the emerging countries and overwhelmingly in the sector of Internet services. Guess what is its largest holding? Alibaba! Other major holdings include Baidu (China’s Google) and Tencent (social media) from China, Mercardolibre (Argentina’s Ebay), Yandex (Russia’s Google), and Flipkart (India’s Alibaba, which is pre-IPO and EMQQ invests in it indirectly through other holdings).

While I’m very interested in this opportunity, keep in mind that this is not something for faint heart. It will be very volatile and you may lose money if you are only looking for some short-term profit. If you want to put money into it, try to establish your position over time via dollar averaging (i.e. buy some now and buy more if it declines) and also for long-term only. Never consider this as a short-term speculation. Over time, however, this may potentially make you really big money some years from now!