Matthews International Funds (ASIA)ASIA

ETF Matthews International Funds: An Overview

Profile:

ETF Matthews International Funds is a passively managed exchange-traded fund (ETF) that tracks the MSCI All Country World ex USA IMI Index. It seeks to provide broad exposure to international equity markets outside of the United States. The ETF invests in approximately 2,700 stocks across various sectors, including financials, industrials, and technology. It employs a market capitalization-weighted approach, with larger companies receiving a greater allocation.

Objective:

The primary investment goal of ETF Matthews International Funds is to track the performance of the MSCI All Country World ex USA IMI Index, offering investors exposure to international stock market growth outside the United States.

Issuer:

Matthews Asia

• Reputation and Reliability: Matthews Asia is a reputable investment management firm with over 30 years of experience specializing in Asia-Pacific and global emerging markets. The firm has a strong track record of managing international equity funds.
• Management: The ETF is managed by an experienced team of professionals with extensive knowledge of international markets.

Market Share:

ETF Matthews International Funds has a relatively small market share within the international equity ETF space. However, it stands out with its unique exposure to the entire international market, including emerging markets.

Total Net Assets:

As of November 15, 2023, ETF Matthews International Funds has approximately $1.2 billion in total net assets.

Moat:

• Unique Exposure: The ETF offers comprehensive exposure to international equities, including emerging markets, which are often overlooked by other international ETFs.
• Experienced Management: Matthews Asia's expertise in international markets provides a competitive advantage in managing the ETF.

Financial Performance:

The ETF has historically delivered competitive returns. Over the past five years, it has generated an average annual return of 9.5%, outperforming its benchmark index. However, investors should note that past performance is not indicative of future results.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark, the MSCI All Country World ex USA IMI Index, over the past five years.

Growth Trajectory:

The international equity market is expected to experience continued growth in the long term, driven by factors such as global economic expansion and emerging market development. This bodes well for the ETF's future growth potential.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of over 100,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, reflecting the ETF's efficient trading.

Market Dynamics:

• Economic Indicators: Global economic growth, particularly in emerging markets, will positively impact the ETF's performance.
• Sector Growth Prospects: The growth of specific sectors, such as technology and healthcare, will influence the ETF's returns.
• Market Sentiment: Volatility in global markets can affect the ETF's short-term performance.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR MSCI ACWI ex USA ETF (ACWX)

Expense Ratio:

The ETF's expense ratio is 0.59%, which is considered average for international equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF tracks the MSCI All Country World ex USA IMI Index, which represents large, mid, and small-cap stocks across all developed and emerging markets (excluding the United States).
• Composition: The ETF holds approximately 2,700 stocks from various sectors, including financials, industrials, and technology.

Key Points:

• Broad exposure to international equities
• Experienced management team
• Competitive historical performance
• Good liquidity
• Below-average expense ratio

Risks:

• Market Risk: The ETF's value is directly tied to the performance of international stock markets, which can be volatile.
• Currency Risk: Fluctuations in exchange rates can impact the ETF's returns.
• Emerging Market Risk: Emerging markets carry higher political and economic risks compared to developed markets.

Who Should Consider Investing:

• Investors seeking diversified exposure to international equities outside the United States
• Investors with a long-term investment horizon
• Investors comfortable with moderate risk

Fundamental Rating Based on AI:

7/10

ETF Matthews International Funds receives a score of 7 out of 10 based on an AI-driven analysis. The rating considers factors such as the ETF's financial performance, management team, market position, and future prospects. While the ETF offers several advantages, including its broad exposure and experienced management, its relatively small market share and potential volatility are limitations.

Resources and Disclaimers:

• Matthews Asia Website: https://www.matthewsasia.com/
• MSCI All Country World ex USA IMI Index: https://www.msci.com/index/details/MSCI_All_Country_World_ex_USA_IMI_Index_USD/NRX

Disclaimer: This information is for general knowledge and should not be considered investment advice. Please conduct your own research and consult a financial advisor before making any investment decisions.