MI REWIND: CHINA, EMERGING & FRONTIER MARKETS

W/ KEVIN CARTER

08 December 2023

In this MI Rewind episode, Robert Leonard chats with Kevin Carter about what emerging or frontier markets are and which countries they consist of, why home-country bias exists and what investors are potentially missing by focusing only on their domestic markets, where to start and how to get started as a new investor in international markets, and much, much more! Kevin is the Founder and CIO of the Emerging Markets Internet & Ecommerce ETF (NYSE: EMQQ) and Chairman of the EMQQ Index Committee. Prior to EMQQ, he was the Founder & CEO of AlphaShares, an investment firm offering five Emerging Markets ETFs in partnership with Guggenheim Investments. In addition, Kevin was the Founder & CEO of Active Index Advisors acquired by Natixis in 2005 and the Founder & CEO of eInvesting acquired by ETRADE in 2000.

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IN THIS EPISODE, YOU’LL LEARN:

  • Revelations Kevin saw when he worked at a mutual fund vs. investments one can do as an individual investor.
  • Lessons Kevin learned when he shorted Amazon.
  • How Kevin got involved with Tesla and his insights on this pick.
  • What emerging or frontier markets are and which countries they consist of.
  • Why home-country bias exists and what investors are potentially missing by focusing only on their domestic markets.
  • What the most important things to look out for when investing in foreign or international markets.
  • Where to start and how to get started as a new investor in foreign markets.
  • The catalyst that’s going to change the dynamics of investing and will have a material impact on the future returns of international markets.
  • How international investors combat against fraud and accounting standards.
  • What impact the pandemic has had on investing in the stock market, both domestically and internationally?
  • And much, much more!

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

Kevin Carter (00:00:02):

People ask me, “How much money should I invest in emerging markets?” And what I tell them is, “If you mean the Vanguard fund or the iShares fund, you shouldn’t put any in emerging markets.”

Robert Leonard (00:00:14):
In this episode of Millennial Investing, I talk with Kevin Carter about what emerging and frontier markets are and which countries they consist of, why home-country bias exists and what investors are potentially missing by focusing only on their domestic markets, where and how to get started investing internationally, and my personal favorite part of the conversation is about how international index funds and ETFs are potentially broken. Kevin is the founder and CIO of the Emerging Markets Internet & Ecommerce ETF, ticker EMQQ, and chairman of the EMQQ Index Committee. Prior to EMQQ, he was the founder and CEO of Alpha Shares, the founder and CEO of Active Index Advisors, and also the founder and CEO of E-Investing, which was acquired by E-Trade in 2000.

Robert Leonard (00:01:07):
Before we get into this episode, I want to share some exciting news in an opportunity we have available for you guys. We’re actually looking for a new podcast host. Specifically, I’m looking for someone who wants to become a podcast host full-time with TIP. You’d be working with me directly and hosting the Millennial Investing Podcast. It is a full-time role, but you’re able to make your own hours, work whenever you want from wherever you want. If you’re interested in applying, please send your resume via email to robert@theinvestorspodcast.com or you can DM me on Twitter or Instagram for more information. And you can connect with me on Twitter and Instagram @therobertleonard.

Robert Leonard (00:01:53):
If you’re on social media, you probably see quite a few financial influencers recommending having a portion of your investing in international index funds and ETFs as a form of diversification. I’ve spent quite some time studying many of the most popular international index funds and ETFs, and they just never seemed enticing to me. In this episode, Kevin explains this brilliantly, and I think you all should really listen closely to his explanation of this if you’ve ever considered diversifying internationally using mainstream index funds and ETFs. Now, without further delay, let’s dive into this conversation with Kevin Carter.

Intro (00:02:32):
You are listening to Millennial Investing by The Investor’s Podcast Network where your host, Robert Leonard, interviews successful entrepreneurs, business leaders, and investors to help educate and inspire the millennial generation.

Robert Leonard (00:02:54):
Hey, everyone. Welcome to the Millennial Investing Podcast. As always, I’m your host, Robert Leonard, and with me today, I have Kevin Carter. Welcome to the show, Kevin.

Kevin Carter (00:03:03):
Thanks, Robert. Glad to be here.

Robert Leonard (00:03:04):
Tell us a bit about your background and how you got to where you are today.

Kevin Carter (00:03:09):
Well, I was born and raised here in the San Francisco Bay Area and I went away to college in Arizona for four and a half years. And then I got a degree in economics and came back to San Francisco in January of 1992. I had one interview with an investment bank called Robertson Stephens & Company, which back in the ’90s was the premier west coast investment bank focused on technology. People used to call it the Goldman Sachs of San Francisco, but now younger people think that means the devil. So we don’t say that anymore, but that’s where I started. I had one interview, it lasted 20 minutes. The first 19 minutes of that, we talked about college basketball, and then I got a one-minute overview of the investment business.

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