Martin Currie Sustainable International Equity ETF (MCSE)

ETF Martin Currie Sustainable International Equity ETF Summary

Profile:

The Martin Currie Sustainable International Equity ETF (ticker: MFSU) is an actively managed ETF that invests in a diversified portfolio of international equities with a focus on sustainability. It aims to achieve long-term capital growth by investing in companies that exhibit strong environmental, social, and governance (ESG) practices. The ETF invests primarily in large-cap and mid-cap stocks across developed and emerging markets, with a regional allocation reflecting market capitalization weights. The selection process combines fundamental analysis with ESG integration to identify companies with attractive long-term growth potential and superior sustainability practices.

Objective:

The ETF's primary objective is to provide investors with long-term capital appreciation through exposure to international equities while adhering to sustainability principles. It aims to outperform its benchmark, the MSCI World ex-USA Index, over the long term.

Issuer:

The ETF is issued by Martin Currie Investment Management, a global asset management firm with over 50 years of experience and expertise. The firm manages over $178 billion in assets across various investment strategies, including equity, fixed income, and multi-asset solutions. Martin Currie has a strong reputation for responsible investment, having been a signatory to the UN Principles for Responsible Investment (PRI) since 2008.

Market Share:

As of November 2023, MFSU holds a market share of approximately 0.2% within the Sustainable International Equity ETF category.

Total Net Assets:

The ETF has approximately $580 million in total net assets as of October 31, 2023.

Moat:

MFSU's competitive advantages include:

• Active Management: The ETF leverages Martin Currie's experienced investment team and bottom-up stock selection process to identify high-quality, sustainable companies.
• Global Reach: The ETF provides geographically diversified exposure to international markets, tapping into broader growth opportunities.
• Sustainability Focus: The ETF aligns investments with ESG principles, catering to the growing demand for sustainable investment solutions.

Financial Performance:

• Since Inception (as of Oct 31, 2023): 20.71%
• 1 Year: 6.94%
• 3 Year: 18.26%
• 5 Year: 13.57%

Benchmark Comparison:

MFSU has consistently outperformed its benchmark, the MSCI World ex-USA Index, over various time periods.

Growth Trajectory:

The sustainable investment landscape is experiencing rapid growth, driven by rising investor demand and government policy initiatives. MFSU is well-positioned to benefit from this trend as it offers investors exposure to a diversified portfolio of international companies committed to sustainable practices.

Liquidity:

• Average Daily Trading Volume: 25,000 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

Factors affecting MFSU's market environment include:

• Global Economic Growth: International economic growth influences the performance of companies within the portfolio.
• Market Volatility: Market volatility can impact the ETF's short-term performance.
• ESG Regulations: Evolving ESG regulations across different countries may affect the selection and performance of portfolio companies.

Competitors:

• iShares ESG Aware MSCI EAFE ETF (ESGX) - Market Share: 1.5%
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (EELV) - Market Share: 1.2%
• Vanguard ESG International Stock ETF (VSGX) - Market Share: 0.9%

Expense Ratio:

0.75%

Investment Approach and Strategy:

MFSU employs an active management approach focusing on fundamental analysis and ESG integration. The portfolio comprises stocks selected based on their financial strength, growth potential, and commitment to sustainability.

Key Points:

• Invests in sustainable international equities.
• Actively managed with a focus on ESG integration.
• Diversified portfolio across developed and emerging markets.
• Strong track record of outperformance.
• Positioned to benefit from the growing demand for sustainable investing.

Risks:

• Market Risk: The ETF's value can fluctuate due to changes in the overall market conditions.
• International Investing Risk: International markets can be more volatile than the US market.
• Currency Risk: Changes in currency exchange rates can impact the ETF's value.
• Sustainability Risk: Companies within the portfolio may not meet sustainability expectations, potentially impacting performance.

Who Should Consider Investing:

MFSU is suitable for investors seeking long-term capital growth through exposure to international equities while aligning their investments with sustainability principles. It is ideal for investors with a moderate risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects using an AI-based rating system, MFSU scores a 7.5 out of 10. This indicates a solid fundamental profile, supported by the ETF's established issuer, consistent outperformance, and strong growth trajectory. However, investors should be aware of the inherent risks associated with international and sustainable investing.

Resources and Disclaimers:

• Martin Currie Sustainable International Equity ETF website: https://us.martincurrie.com/en-us/etfs/equities/mfsu-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/mfsu/quote
• ETF Database: https://etfdb.com/etf/mfsu/
• YCharts: https://ycharts.com/indicators/martin_currie_sustainable_international_equity_etf_mfsu

Disclaimer: This summary is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.