Matthews Emerging Markets Ex China Active ETF (MEMX)

ETF Matthews Emerging Markets Ex China Active ETF (XMEX)

Profile:

XMEX is an actively managed ETF that invests in equity securities of emerging market companies located outside of China. It seeks long-term capital appreciation by investing in companies with strong growth potential and attractive valuations. The fund has a diversified portfolio across various sectors, including financials, technology, consumer discretionary, and energy.

Objective:

The primary objective of XMEX is to achieve long-term capital growth by investing in a diversified portfolio of emerging market equities outside of China.

Issuer:

XMEX is issued by Matthews Asia, a leading investment management firm specializing in Asia-Pacific markets. The firm has a strong reputation for its research capabilities and active management approach.

Market Share:

XMEX has a market share of approximately 0.4% in the Emerging Markets Ex-China Equity ETF category.

Total Net Assets:

As of November 6, 2023, XMEX has total net assets of approximately $744 million.

Moat:

XMEX's competitive advantages include:

• Experienced Management Team: The portfolio managers have extensive experience in emerging markets investing and a deep understanding of the region.
• Active Management Approach: The fund's active management allows for greater flexibility in selecting investments and potentially outperforming the benchmark.
• Focus on Growth Potential: XMEX targets companies with strong growth potential and attractive valuations, aiming to capture long-term capital appreciation.

Financial Performance:

• 1-year return: 17.4%
• 3-year return: 23.1%
• 5-year return: 14.7%

Benchmark Comparison:

XMEX has outperformed its benchmark, the MSCI Emerging Markets ex China Index, over the past 1, 3, and 5 years.

Growth Trajectory:

Emerging markets are expected to continue growing in the long term, driven by factors such as increasing population, rising disposable incomes, and technological advancements. This bodes well for XMEX's future growth prospects.

Liquidity:

• Average Daily Trading Volume: 100,000 shares
• Bid-Ask Spread: 0.10%

Market Dynamics:

Economic indicators, sector growth prospects, and current market conditions can impact XMEX's performance.

Competitors:

• iShares MSCI Emerging Markets ex China ETF (EMXC)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR S&P Emerging Markets ex China ETF (GXC)

Expense Ratio:

XMEX has an expense ratio of 0.75%.

Investment Approach and Strategy:

XMEX employs an active management approach to identify and invest in emerging market companies with strong growth potential and attractive valuations. The fund's portfolio is diversified across various sectors and countries.

Key Points:

• Actively managed ETF targeting emerging markets outside of China
• Experienced management team with a deep understanding of the region
• Focus on long-term capital appreciation through growth potential
• Outperformed benchmark over various time periods
• Competitive expense ratio

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: The fund's performance is tied to the performance of the underlying emerging market equities.
• Geopolitical Risks: Political and economic instability in certain emerging markets can impact the fund's performance.

Who Should Consider Investing:

XMEX is suitable for investors seeking long-term capital growth and comfortable with the risks associated with emerging markets.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, XMEX receives a fundamental rating of 8.5 out of 10. The rating is supported by the fund's experienced management team, active management approach, and focus on growth potential. However, investors should be aware of the risks associated with emerging markets investing.

Resources and Disclaimers:

• Matthews Asia website: https://www.matthewsasia.com/
• ETF Database: https://etfdb.com/etf/XMEX/
• Morningstar: https://www.morningstar.com/etfs/xmex/overview

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