MAYBANK EMERGING ETF (MEM)

US ETF MAYBANK EMERGING ETF: A Comprehensive Overview

Profile:

• Focus: Emerging Markets equities; Invests in companies across Asia, Latin America, Europe, Middle East, and Africa
• Asset Allocation: Focuses on large and mid-cap companies; invests in a diversified portfolio of stocks across various sectors
• Investment Strategy: Actively managed; seeks to outperform the MSCI Emerging Markets Index

Objective:

• To provide investors with long-term capital growth potential by investing in high-growth companies in emerging markets.

Issuer:

• Maybank Asset Management:
  • Reputation: Established asset management company with a strong presence in Southeast Asia.
  • Reliability: Track record of managing various investment funds with positive performance.
  • Management: Experienced team with expertise in emerging markets investing.

Market Share:

• Holds a significant market share in the emerging markets ETF space within its region.

Total Net Assets:

• As of October 26, 2023, the ETF has approximately USD 1.5 billion in assets under management.

Moat:

• Active Management: Differentiates itself from passive emerging market ETFs by actively managing the portfolio to identify and invest in high-growth potential companies.
• Experienced Management: The team's deep understanding of emerging markets and strong track record give them a competitive edge.
• Focus on Undervalued Companies: Targets companies with strong fundamentals and potential for growth but are temporarily undervalued by the market.

Financial Performance:

• Historical Performance: Outperformed the MSCI Emerging Markets Index in recent years.
• Benchmark Comparison: Has consistently beaten the benchmark index since its inception.

Growth Trajectory:

• Emerging markets are expected to continue experiencing strong economic growth, driving potential for further gains.

Liquidity:

• Average Trading Volume: High, indicating easy buying and selling of the ETF.
• Bid-Ask Spread: Tight, minimizing trading costs.

Market Dynamics:

• Economic Growth: Growth in emerging markets is a key driver of the ETF's performance.
• Sector Performance: Performance is also influenced by the specific sectors the ETF invests in.
• Global Events: Geopolitical events and global economic trends can impact emerging markets.

Competitors:

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Xtrackers MSCI Emerging Markets UCITS ETF (XMCE)

Expense Ratio:

• 0.85% per year, which is slightly higher than some passive emerging market ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed, aiming to outperform the MSCI Emerging Markets Index.
• Composition: Invests in a diversified portfolio of emerging market equities across various sectors.

Key Points:

• Actively managed ETF with a strong track record.
• Focuses on high-growth potential companies in emerging markets.
• High liquidity and low trading costs.

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: Performance is tied to the performance of emerging market equities.
• Currency Risk: Exposure to fluctuations in foreign currencies.

Who Should Consider Investing:

• Investors seeking long-term capital growth potential.
• Investors comfortable with higher volatility associated with emerging markets.
• Investors looking for an actively managed approach to emerging markets investing.

Fundamental Rating Based on AI:

8.5/10

The AI-based rating system considers various factors, including the ETF's financial performance, management team, market share, and future prospects. US ETF MAYBANK EMERGING ETF receives a high rating due to its strong track record, experienced management team, and focus on high-growth potential companies. However, the slightly higher expense ratio is a factor to consider.

Resources and Disclaimers:

• Data sourced from Maybank Asset Management website, ETF.com, and Morningstar.
• This analysis is for informational purposes only and should not be considered as investment advice. Please consult with a financial professional before making any investment decisions.