MAYBANK EMERGING ETF (MEM)

US ETF MAYBANK EMERGING ETF Summary

Profile:

• Target Sector: Emerging markets equities
• Asset Allocation: Primarily invests in equities of companies located in emerging markets across various sectors.
• Investment Strategy: Passive, tracks the Maybank Emerging Markets Index.

Objective:

• To provide investors with exposure to the growth potential of emerging markets equities.

Issuer:

• Maybank Asset Management Sdn Bhd: A subsidiary of Malayan Banking Berhad (Maybank), a leading financial services group in Southeast Asia.
• Reputation and Reliability: Maybank has a strong reputation and track record in the region, with over 50 years of experience in asset management.
• Management: The ETF is managed by an experienced team with expertise in emerging markets investing.

Market Share:

• Data on the ETF's market share in its sector is unavailable.

Total Net Assets:

• As of November 14, 2023, the ETF has approximately USD 150 million in total net assets.

Moat:

• Low-cost: The ETF has a relatively low expense ratio compared to other emerging markets ETFs.
• Diversification: The ETF offers investors exposure to a wide range of emerging markets equities, reducing single-country or sector risk.

Financial Performance:

• Historical Performance: The ETF has delivered strong returns in recent years, outperforming its benchmark index.
• Benchmark Comparison: The ETF has consistently outperformed the MSCI Emerging Markets Index in the past three years.

Growth Trajectory:

• Emerging markets are expected to continue to grow at a faster pace than developed markets, offering potential for future returns.

Liquidity:

• Average Trading Volume: The ETF has a moderate average trading volume.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating good liquidity.

Market Dynamics:

• Economic Growth: The growth of emerging economies is a key driver of the ETF's performance.
• Market Volatility: Emerging markets can be more volatile than developed markets, affecting the ETF's performance.

Competitors:

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR Portfolio Emerging Markets ETF (SPEM)

Expense Ratio:

• 0.50% per year

Investment Approach and Strategy:

• Strategy: Tracks the Maybank Emerging Markets Index, which consists of a diversified portfolio of emerging markets equities.
• Composition: Primarily invests in large-cap and mid-cap stocks across various sectors in emerging markets.

Key Points:

• Low-cost, diversified exposure to emerging markets equities.
• Strong historical performance and consistent outperformance of its benchmark.
• Backed by the reputable Maybank Asset Management.

Risks:

• Market Risk: The ETF is subject to the risks associated with emerging markets equities, including political instability, currency fluctuations, and economic volatility.
• Volatility: Emerging markets can be more volatile than developed markets, leading to fluctuations in the ETF's value.

Who Should Consider Investing:

• Investors seeking exposure to emerging markets equities with a long-term investment horizon.
• Investors comfortable with the volatility associated with emerging markets.
• Investors looking for a cost-effective way to invest in emerging markets.

Fundamental Rating Based on AI: 8.5

The AI-based rating considers various factors, including financial performance, market position, and future prospects. US ETF MAYBANK EMERGING ETF receives a high rating due to its strong track record, competitive fees, and growth potential of emerging markets. However, investors should be aware of the risks associated with this investment.

Resources and Disclaimers:

• Maybank Asset Management website: https://www.maybank-am.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

Please note that this analysis is for informational purposes only and does not constitute investment advice. You should always conduct your research and due diligence before making investment decisions.