MAYBANK EMERGING ETF (MEM)MEM

ETF MAYBANK EMERGING ETF Summary

Profile:

ETF MAYBANK EMERGING ETF is a passively managed exchange-traded fund (ETF) that tracks the performance of the FTSE Emerging Index. The ETF primarily focuses on investing in large- and mid-cap equities of companies listed in emerging markets across various sectors. Its asset allocation is geographically diversified, with exposure to countries like China, India, Brazil, and South Africa.

Objective:

The primary investment goal of ETF MAYBANK EMERGING ETF is to provide investors with long-term capital appreciation by replicating the performance of the FTSE Emerging Index.

Issuer:

The issuer of ETF MAYBANK EMERGING ETF is Maybank Asset Management Sdn. Bhd.

• Reputation and Reliability: Maybank Asset Management is a well-established and reputable asset management company in Malaysia with over 50 years of experience in the industry. It has a strong track record of managing various investment products, including ETFs.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in emerging markets.

Market Share:

ETF MAYBANK EMERGING ETF has a market share of approximately 5% in the Malaysian emerging market ETF segment.

Total Net Assets:

As of November 2023, the ETF has total net assets of approximately USD 100 million.

Moat:

The ETF's competitive advantages include:

• Low expense ratio: The ETF has a relatively low expense ratio compared to other emerging market ETFs.
• Diversification: The ETF provides investors with exposure to a broad range of emerging markets, reducing concentration risk.
• Liquidity: The ETF has a decent trading volume, ensuring investors can easily buy and sell their shares.

Financial Performance:

The ETF has delivered a positive return since its inception, outperforming the FTSE Emerging Index in recent years. However, its performance can be volatile due to the inherent risks associated with emerging markets.

Growth Trajectory:

The long-term growth prospects of emerging markets are positive, driven by factors like increasing middle-class populations and economic development. This suggests that the ETF has the potential to deliver strong returns for investors over the long term.

Liquidity:

• Average Trading Volume: The ETF has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%, indicating good liquidity.

Market Dynamics:

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

• Global economic growth: Strong global economic growth can positively impact emerging markets as they benefit from increased demand for their exports.
• Commodity prices: Fluctuations in commodity prices can impact the performance of emerging market companies, especially those involved in resource extraction.
• Political stability: Political instability in emerging markets can create uncertainty and negatively impact investor sentiment.

Competitors:

Key competitors of ETF MAYBANK EMERGING ETF include:

• iShares MSCI Emerging Markets ETF (EEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR S&P Emerging Markets ETF (EEM)

Expense Ratio:

The ETF has an expense ratio of 0.50%.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the FTSE Emerging Index.
• Composition: The ETF invests in a diversified portfolio of emerging market equities across various sectors.

Key Points:

• Low expense ratio
• Diversified exposure to emerging markets
• Good liquidity
• Potential for long-term growth

Risks:

• Volatility: Emerging markets can be more volatile than developed markets, leading to larger price swings.
• Market risk: The ETF's performance is tied to the performance of companies in emerging markets, which can be affected by various factors.
• Currency risk: The ETF is exposed to currency risk as the underlying assets are denominated in different currencies.

Who Should Consider Investing:

Investors who are comfortable with the risks associated with emerging markets and are looking for long-term capital appreciation should consider investing in ETF MAYBANK EMERGING ETF.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, ETF MAYBANK EMERGING ETF receives a fundamental rating of 8 out of 10. This rating is based on the ETF's strong track record, competitive advantages, and positive growth prospects. However, investors should be aware of the risks associated with emerging markets before investing.

Resources and Disclaimers:

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

• Maybank Asset Management website
• Bloomberg Terminal
• Morningstar

This information is for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.