3 emerging-market stocks to watch
The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
If you’re looking for emerging-market stocks to buy now, then according to Eli Koen, portfolio manager at Emerging Market Impact Equities, Union Bancaire Privée, it might be worth considering firms that generate a “positive environmental or social impact”.
Emerging-market firms have become “global leaders” in areas such as renewable energy and clean mobility, helping to facilitate the “fall in costs” that has made these technologies more competitive and affordable.
Here are three emerging-market stocks to buy today based on this outlook.
Stocks to buy now
According to Koen, here are the top stocks to look at now:
Microfinance leader: Gentera
Gentera (Mexico City: GENTERA) is a microfinance lender headquartered in Mexico.
The group provides banking and credit services to the underserved populations of Mexico, Peru, and Guatemala, giving very small loans to micro-businesses, particularly in rural areas, for working capital or start-up needs.
“Many of these are low-income women (around 90% of all the clients) who would otherwise have no access to traditional banking products,” says Koen.
“Initially founded as a non-profit non-governmental organisation, Gentera has transformed itself into a for-profit bank to scale up and achieve its mission of enabling greater financial inclusion,” the manager adds.
Food security in emerging markets: Pinduoduo
Pinduoduo (Nasdaq: PDD) directly connects more than 850 million consumers with 16 million farmers. Cutting out the middleman helps farmers increase their income while cutting costs for consumers.
“Furthermore, PDD encourages the development of modern agricultural techniques in its pilot farms, where the latest technology is used to collect data; it helps farmers improve their digital skills,” says Coen.
One of the best stocks to buy for EVs: LG Chem
Its subsidiary LGES is the second-largest EV battery maker in the world, supplying VW, Tesla, Ford, Daimler, GM, and Volvo.
“The low penetration rates of EVs today, coupled with growing demand from consumers, creates growth opportunities for the firm,” the fund manager explains.