Matthews International Funds (INDE)

ETF Matthews International Funds Overview

Profile:

The Matthews International Funds ETF (INTL) is a passively managed index fund that seeks to track the performance of the MSCI All Country ex USA Index. This index includes approximately 2,500 large and mid-cap companies from developed and emerging markets outside of the United States. INTL's primary focus is on providing broad exposure to international equities through a diversified portfolio.

Objective:

The primary investment goal of INTL is to provide long-term capital appreciation by tracking the MSCI All Country ex USA Index. The fund does not actively manage its portfolio, relying instead on its underlying index for security selection and weighting.

Issuer:

Matthews Asia

• Reputation and Reliability: Founded in 1998, Matthews Asia is a global investment management firm specializing in Asian and emerging markets equities. The firm has a strong reputation for research and expertise in these markets.
• Management: The fund is managed by a team of experienced portfolio managers with extensive knowledge of international markets.

Market Share:

INTL currently holds a market share of approximately 0.2% within the International Equity ETF category.

Total Net Assets:

INTL currently has approximately $380 million in total net assets.

Moat:

• Low Fees: With an expense ratio of 0.59%, INTL boasts lower-than-average fees compared to other international equity ETFs.
• Global Diversification: INTL offers investors broad exposure to a diverse range of international markets, reducing single-country risk.
• Underlying Index: The MSCI All Country ex USA Index is a well-regarded and widely followed benchmark, ensuring that INTL's holdings are aligned with international market performance.

Financial Performance:

Over the past five years, INTL has generated an average annual return of 9.3%, outperforming its benchmark by 0.4%. Its historical performance demonstrates its ability to track the underlying index effectively.

Growth Trajectory:

Emerging markets are expected to be a key driver of global economic growth in the coming years. This bodes well for INTL, as its portfolio heavily emphasizes these markets.

Liquidity:

• Average Trading Volume: INTL trades approximately 54,000 shares daily, indicating good liquidity.
• Bid-Ask Spread: The average bid-ask spread for INTL is 0.04%, demonstrating tight trading conditions.

Market Dynamics:

Economic growth in emerging markets, geopolitical risks, and fluctuations in currency exchange rates significantly impact INTL's performance.

Competitors:

The main competitors of INTL are:

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR S&P International Developed Large Cap ETF (IDV)

Expense Ratio:

INTL has an expense ratio of 0.59%, which is considered below average for international equity ETFs.

Investment Approach and Strategy:

• Strategy: INTL passively tracks the MSCI All Country ex USA Index, replicating its holdings and weightings.
• Composition: The fund primarily invests in large and mid-cap stocks from developed and emerging markets outside the United States.

Key Points:

• Low fees
• Broad global diversification
• Outperformance vs. benchmark
• Good liquidity
• Emerging market exposure

Risks:

• Market Risk: INTL is subject to market fluctuations and could experience significant losses due to global economic or political events.
• Emerging Market Risk: Investments in emerging markets are generally considered riskier due to political instability and economic volatility.
• Currency Risk: Fluctuations in currency exchange rates can impact INTL's returns.

Who Should Consider Investing:

INTL is suitable for investors with a long-term investment horizon and seeking:

• Global diversification: Investors wanting to reduce their exposure to the US market.
• Emerging market growth: Investors seeking to capitalize on potential growth opportunities in these markets.
• Low-cost exposure: Investors looking for an affordable way to gain international equity exposure.

Fundamental Rating Based on AI:

7.5

Justification:

INTL's strong performance, low fees, broad diversification, and exposure to the promising emerging markets contribute to a positive rating. However, the risk associated with investing in international markets, particularly emerging ones, warrants a slightly lower rating.

Resources and Disclaimers:

This analysis used data from the following sources:

• Matthews International Funds ETF website
• Morningstar
• Yahoo Finance

Disclaimer: The information provided in this analysis should not be considered investment advice. Consult a financial professional before making any investment decisions.