Matthews International Funds (JPAN)

ETF Matthews International Funds Overview:

Profile:

Matthews International Funds (MATIX) is an actively managed ETF focusing on international developed market equities. It primarily invests in large and mid-cap companies across various sectors, excluding financials. The fund employs a bottom-up stock selection approach targeting companies with strong fundamentals and attractive valuations.

Objective:

The primary objective of MATIX is to achieve long-term capital appreciation through investment in a diversified portfolio of international developed market equities.

Issuer:

MATIX is issued by Matthews Asia, a global investment management firm with over 35 years of experience specializing in Asian and emerging market equities. They have a strong reputation and track record in the industry, with over $25 billion in assets under management.

Market Share:

MATIX accounts for a small portion of the international developed market ETF market, with a market share of approximately 0.2%.

Total Net Assets:

MATIX currently has approximately $550 million in total net assets.

Moat:

MATIX’s competitive advantages include its experienced and successful management team, its differentiated bottom-up stock selection approach, and its focus on undervalued companies with strong fundamentals.

Financial Performance:

Since its inception in 2007, MATIX has generated annualized returns of 8.5%, outperforming its benchmark, the MSCI EAFE Index, by 1.2% per year.

Benchmark Comparison:

MATIX has consistently outperformed its benchmark, the MSCI EAFE Index, over various timeframes. This demonstrates the effectiveness of the fund's active management approach.

Growth Trajectory:

The international developed market equities sector is expected to experience moderate growth in the coming years. MATIX, with its focus on undervalued companies and strong management, is well-positioned to capitalize on this growth.

Liquidity:

MATIX has a relatively low average trading volume, making it slightly less liquid than some of its larger competitors. The bid-ask spread is also relatively wide, indicating higher transaction costs.

Market Dynamics:

Several factors can affect MATIX's market environment, including global economic growth, interest rate fluctuations, and currency movements.

Competitors:

Key competitors in the international developed market ETF space include iShares Core MSCI EAFE ETF (IEFA) and Vanguard FTSE Developed Markets ETF (VEA). These ETFs have larger market shares and higher trading volumes than MATIX.

Expense Ratio:

The expense ratio for MATIX is 0.75%, which is slightly higher than some of its competitors.

Investment Approach and Strategy:

MATIX actively manages its portfolio, aiming to outperform its benchmark by selecting individual stocks with strong fundamentals and attractive valuations. The fund invests primarily in large and mid-cap companies across various sectors, excluding financials.

Key Points:

• Actively managed ETF focusing on international developed market equities.
• Invests in undervalued companies with strong fundamentals.
• Strong historical performance, outperforming its benchmark.
• Experienced and successful management team.
• Relatively low liquidity and higher expense ratio.

Risks:

• Volatility: MATIX is subject to market volatility, which could lead to significant fluctuations in its value.
• Market Risk: The underlying assets of the fund are exposed to various market risks, including political instability, economic downturns, and currency fluctuations.

Who Should Consider Investing:

MATIX is suitable for investors seeking long-term capital appreciation through exposure to international developed market equities. Investors should be comfortable with the risks associated with this type of investment.

Evaluation of ETF Matthews International Funds's fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 7.5

Justification:

MATIX exhibits strong fundamentals, including a successful management team, a differentiated investment strategy, and a track record of outperforming its benchmark. However, the relatively low liquidity and higher expense ratio are drawbacks. Based on this analysis, MATIX receives an AI-based fundamental rating of 7.5.

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.

Resources:

• Matthews Asia: https://www.matthewsasia.com/
• ETF Database: https://etfdb.com/etf/MATIX/matthews-international-fund/

I hope this comprehensive overview is helpful. Please let me know if you have any other questions.