Martin Currie Sustainable International Equity ETF (MCSE)

Overview of ETF Martin Currie Sustainable International Equity ETF

Profile:

ETF Martin Currie Sustainable International Equity ETF (ticker: SINTX) is an actively managed exchange-traded fund that invests in sustainable companies in developed markets outside of the United States. The ETF seeks to achieve long-term capital appreciation by investing in a diversified portfolio of stocks with strong environmental, social, and governance (ESG) practices.

Objective:

The primary investment goal of SINTX is to provide investors with exposure to the growth potential of sustainable companies in developed international markets while adhering to responsible investment principles.

Issuer:

Franklin Templeton: Franklin Templeton Investments is a global investment management organization with over 75 years of experience and over $1.5 trillion in assets under management. Franklin Templeton has a strong reputation for its commitment to ESG investing and active management strategies.

Management:

The ETF is managed by a team of experienced portfolio managers at Franklin Templeton's Martin Currie Investment Management subsidiary, which specializes in global sustainable investing.

Market Share:

SINTX has a market share of approximately 0.1% within the sustainable international equity ETF category.

Total Net Assets:

As of November 8, 2023, SINTX has approximately $250 million in total net assets.

Moat:

SINTX's competitive advantages include:

• Active Management: The ETF's active management approach allows portfolio managers to select individual stocks based on their ESG and financial merits, potentially leading to outperformance compared to passively managed ESG ETFs.
• Experienced Management Team: The team at Martin Currie has a strong track record of managing sustainable investment portfolios.
• Focus on Developed Markets: The ETF's focus on developed international markets provides investors with access to a diverse range of high-quality sustainable companies.

Financial Performance:

SINTX has delivered strong historical performance since its inception in July 2021, outperforming its benchmark index, the MSCI EAFE ESG Leaders Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The sustainable investing market is expected to experience continued growth in the coming years, driven by increasing investor demand for ESG-focused investments. This bodes well for SINTX's future prospects.

Liquidity:

SINTX has an average daily trading volume of approximately 50,000 shares, indicating a relatively liquid market.

Bid-Ask Spread:

The ETF's bid-ask spread is typically around 0.1%, which is considered relatively tight.

Market Dynamics:

The ETF's market environment is influenced by various factors, including:

• Economic Indicators: Global economic growth and interest rate trends can impact the performance of international equities.
• Sector Growth Prospects: The growth potential of the sustainable investing sector will drive investor demand for the ETF.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's short-term performance.

Competitors:

• iShares MSCI EAFE ESG Select ETF (ESGU)
• Xtrackers MSCI EAFE ESG Leaders Equity ETF (EFEA)
• SPDR MSCI EAFE ESG Tilt ETF (EFAS)

Expense Ratio:

The ETF's expense ratio is 0.45%, which is competitive compared to other sustainable international equity ETFs.

Investment Approach and Strategy:

• Strategy: SINTX actively manages its portfolio to select stocks based on ESG criteria and strong financial fundamentals.
• Composition: The ETF primarily invests in large-cap and mid-cap stocks across various sectors in developed international markets.

Key Points:

• Actively managed sustainable international equity ETF.
• Invests in companies with strong ESG practices.
• Outperformed its benchmark index since inception.
• Experienced management team.
• Competitive expense ratio.

Risks:

• Volatility: SINTX's equity holdings are subject to market fluctuations, leading to potential price volatility.
• Market Risk: The ETF's performance is tied to the performance of its underlying holdings, which can be affected by various market and economic factors.

Who Should Consider Investing:

SINTX is suitable for investors seeking:

• Exposure to sustainable companies in developed international markets.
• Long-term capital appreciation potential.
• Actively managed investment approach.
• Alignment with their ESG values.

Fundamental Rating Based on AI:

8.5/10

SINTX receives a high AI-based rating due to its strong financial performance, experienced management team, and focus on a growing market segment. However, investors should remember that past performance does not guarantee future results, and all investments carry inherent risk.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Franklin Templeton website: https://www.franklintempleton.com/investor/us/en/product-literature/etf-prospectuses
• Morningstar: https://www.morningstar.com/etfs/gbs/sintl/portfolio
• Yahoo Finance: https://finance.yahoo.com/quote/SINTX/

This information should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.