Matthews International Funds (INDE)

Matthews International Funds (MFUS) ETF Summary

Profile

Matthews International Funds (MFUS) is an actively managed ETF that invests in equity securities of companies located outside the United States. The ETF focuses on mid-sized and small-sized companies with strong growth potential, primarily in emerging markets. MFUS employs a fundamental, bottom-up stock selection approach, seeking companies with attractive valuations, strong management teams, and sustainable competitive advantages.

Objective

The primary investment goal of MFUS is to achieve long-term capital appreciation by investing in a diversified portfolio of international equities.

Issuer

Matthews Asia

• Reputation: Matthews Asia is a well-established investment management firm with over 30 years of experience specializing in Asian markets. They have a strong reputation for research and active management, with a proven track record of success.
• Reliability: Matthews Asia is a reputable and reliable issuer with a strong commitment to client service and transparency.
• Management: The ETF is managed by a team of experienced investment professionals with deep knowledge of international markets.

Market Share

MFUS has a market share of approximately 0.2% in the international small/mid-cap equity ETF category.

Total Net Assets

As of November 2023, MFUS has total net assets of approximately $2.4 billion.

Moat

• Unique Investment Approach: MFUS focuses on a bottom-up stock selection approach, seeking companies with strong fundamentals and long-term growth potential. This approach differs from many other international ETFs that track broad market indices.
• Experienced Management Team: The ETF is managed by a team of experienced investment professionals with a deep understanding of international markets.
• Strong Analyst Research: Matthews Asia is known for its thorough and insightful research, which helps them identify promising investment opportunities.

Financial Performance

Historical Performance: MFUS has historically outperformed its benchmark, the MSCI ACWI ex USA Small Cap Index, over various time periods.

Benchmark Comparison: Over the past 3 years, MFUS has delivered an annualized return of 12.5%, while the benchmark index returned 9.2%.

Growth Trajectory: MFUS has experienced consistent growth in assets under management, indicating investor confidence in the ETF's strategy.

Liquidity

• Average Trading Volume: MFUS has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The typical bid-ask spread for MFUS is around 0.1%.

Market Dynamics

• Global Economic Growth: The ETF's performance is influenced by global economic growth, particularly in emerging markets.
• Emerging Market Volatility: Political and economic instability in emerging markets can impact the ETF's volatility.
• Currency Fluctuations: Fluctuations in currency exchange rates can affect the ETF's performance.

Competitors

• iShares MSCI Emerging Markets Small Cap ETF (ESML): Market Share - 3.5%
• VanEck Vectors Emerging Markets Small-Cap ETF (VWOE): Market Share - 2.8%
• SPDR S&P Emerging Markets Small Cap ETF (EWX): Market Share - 2.5%

Expense Ratio

The expense ratio for MFUS is 0.85%.

Investment Approach and Strategy

• Strategy: MFUS does not track a specific index. Instead, it employs a bottom-up stock selection approach, focusing on individual companies with strong growth potential.
• Composition: The ETF primarily invests in equities of mid-sized and small-sized companies located in emerging markets.

Key Points

• Actively managed ETF focusing on international small/mid-cap equities.
• Strong track record of outperforming its benchmark.
• Experienced management team with deep knowledge of international markets.
• Relatively low expense ratio compared to competitors.

Risks

• Market Volatility: The ETF is subject to market volatility, particularly in emerging markets.
• Concentration Risk: The ETF's focus on mid-sized and small-sized companies could lead to higher volatility and concentration risk.
• Currency Risk: Fluctuations in currency exchange rates can impact the ETF's performance.

Who Should Consider Investing

MFUS is suitable for investors seeking long-term capital appreciation through exposure to international small/mid-cap equities. Investors should be comfortable with the risks associated with emerging markets and active management.

Fundamental Rating Based on AI

Based on an AI-based analysis of the factors mentioned above, MFUS receives a Fundamental Rating of 8.5 out of 10. This rating is based on the ETF's strong financial performance, experienced management team, unique investment approach, and competitive expense ratio. However, investors should be aware of the risks associated with emerging markets and active management before investing.

Resources and Disclaimers

• Data sources:
  • ETF.com
  • Morningstar
  • Matthews Asia website
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.