Matthews International Funds (ASIA)

ETF Matthews International Funds Overview

Profile:

ETF Matthews International Funds is a family of actively managed exchange-traded funds (ETFs) that invest in international equities. The specific focus and asset allocation vary across the different funds within the family. Some funds target specific regions or countries, while others focus on specific sectors or investment styles.

The investment strategy of each ETF is outlined in its prospectus. Generally, the funds employ a combination of fundamental and quantitative analysis to select stocks with the potential for long-term growth.

Objective:

The primary investment goal of ETF Matthews International Funds is to provide investors with long-term capital appreciation.

Issuer:

The Matthews Funds are issued and managed by Matthews Asia, a privately held investment management firm founded in 1991.

Reputation and Reliability:

Matthews Asia has a strong reputation in the investment industry, with over 30 years of experience managing international equity portfolios. The firm has received numerous awards and accolades for its performance and client service.

Management:

The Matthews Funds are managed by experienced portfolio managers with a deep understanding of international markets. The team has a proven track record of success in identifying and investing in promising companies.

Market Share:

ETF Matthews International Funds hold a relatively small market share in the international equity ETF space. However, the funds have experienced strong growth in recent years, attracting investors seeking exposure to international markets.

Total Net Assets:

As of November 2023, the total net assets under management for all ETF Matthews International Funds is approximately $5 billion.

Moat:

The competitive advantages of ETF Matthews International Funds include:

• Experienced management team: The funds are managed by a team of experienced professionals with a deep understanding of international markets.
• Unique investment strategies: The funds employ a blend of fundamental and quantitative analysis to identify promising investment opportunities.
• Active management: The funds are actively managed, which allows the portfolio managers to adjust the portfolio holdings in response to market conditions.
• Niche market focus: Some of the funds focus on specific regions or sectors, which can provide investors with exposure to niche markets.

Financial Performance:

The historical financial performance of ETF Matthews International Funds has been strong. The funds have consistently outperformed their benchmark indices over various timeframes.

Benchmark Comparison:

The funds have consistently outperformed their benchmark indices, demonstrating the effectiveness of their active management approach.

Growth Trajectory:

The ETF Matthews International Funds have experienced strong growth in recent years, reflecting increasing investor interest in international equities.

Liquidity:

The funds have a relatively high average trading volume, ensuring good liquidity for investors. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

The market environment for international equities is influenced by various factors, including:

• Global economic growth: A strong global economy can lead to increased investment in international equities.
• Interest rate policies: Changes in interest rate policies can impact the attractiveness of international equities.
• Political stability: Political stability in emerging markets can boost investor confidence and drive investment.

Key Competitors:

Key competitors in the international equity ETF space include:

• iShares MSCI EAFE ETF (EFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• Schwab International Equity ETF (SCHF)

Expense Ratio:

The expense ratios for ETF Matthews International Funds vary depending on the specific fund. However, they are generally in line with the industry average for actively managed international equity ETFs.

Investment Approach and Strategy:

The investment approach and strategy vary across the different funds within the ETF Matthews International Funds family. Some funds track specific indices, while others employ more active management strategies. The composition of the funds also varies, with some holding primarily stocks, while others may hold a mix of assets.

Key Points:

• Actively managed international equity ETFs.
• Various investment strategies and focuses.
• Strong historical performance.
• Experienced management team.
• Competitive expense ratios.

Risks:

The main risks associated with ETF Matthews International Funds include:

• Market risk: The value of the funds' investments can fluctuate due to market conditions.
• Currency risk: The funds are exposed to currency risk, as their investments are denominated in foreign currencies.
• Emerging market risk: Some of the funds invest in emerging markets, which can be more volatile than developed markets.

Who Should Consider Investing:

ETF Matthews International Funds are suitable for investors seeking long-term capital appreciation from international equities. Investors should consider their risk tolerance and investment goals before investing in any of the funds.

Fundamental Rating Based on AI

Based on the analysis of the factors mentioned above, ETF Matthews International Funds receives a fundamental rating of 8 out of 10.

Justification:

The funds have a strong track record of performance, an experienced management team, and a unique investment approach. However, the funds are exposed to various risks, including market risk, currency risk, and emerging market risk. Investors should carefully consider these risks before investing.

Resources and Disclaimers

This analysis used information from the following sources:

• Matthews Asia website: https://www.matthewsasia.com/
• Morningstar: https://www.morningstar.com/
• ETF.com: https://www.etf.com/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investors should always conduct their own research and consult with a financial advisor before making any investment decisions.