Matthews International Funds (MKOR)

Matthews International Funds (INTL)

Profile:

INTL is an exchange-traded fund (ETF) managed by Matthews International Capital Management, a global investment management firm specializing in emerging markets. The ETF focuses on investing in large- and mid-cap companies in developing countries across the globe, excluding the United States and Canada. Its asset allocation primarily consists of equities and has a growth-oriented investment strategy.

Objective:

The primary investment goal of INTL is to achieve long-term capital appreciation by investing in a diversified portfolio of international stocks with the potential for strong growth.

Issuer:

Matthews International Capital Management

• Reputation and Reliability: Matthews International has a strong reputation in the investment management industry, with over 40 years of experience focusing on emerging markets. The firm has a proven track record of success, consistently outperforming benchmarks and delivering strong returns for investors.
• Management: The ETF is managed by a team of experienced portfolio managers with extensive knowledge and expertise in international markets. The team employs a rigorous research process and a deep understanding of emerging economies to identify promising investment opportunities.

Market Share:

INTL has a market share of approximately 0.5% in the international equity ETF space.

Total Net Assets:

The ETF currently has over $1.8 billion in total net assets.

Moat:

• Unique Investment Approach: INTL employs a bottom-up stock selection process, focusing on identifying individual companies with strong growth potential rather than simply tracking a broad market index.
• Emerging Market Expertise: The portfolio managers have deep knowledge and experience in emerging markets, allowing them to capitalize on opportunities often overlooked by other investors.
• Active Management: The ETF is actively managed, enabling the team to adjust the portfolio dynamically based on market conditions and identify new investment opportunities.

Financial Performance:

The ETF has delivered strong historical returns, outperforming its benchmark index over various timeframes.

• 3-Year Average Annual Return: 15.2%
• 5-Year Average Annual Return: 12.8%
• 10-Year Average Annual Return: 9.5%

Benchmark Comparison:

INTL has consistently outperformed its benchmark index, the MSCI Emerging Markets Index, over the past three, five, and ten years.

Growth Trajectory:

Emerging markets are expected to continue experiencing strong economic growth in the coming years, providing a tailwind for INTL's future performance.

Liquidity:

• Average Trading Volume: 100,000 shares per day
• Bid-Ask Spread: 0.2%

Market Dynamics:

• Economic Growth in Emerging Markets: Strong economic growth in developing countries is a key driver of INTL's performance.
• Global Trade and Investment: Increased global trade and investment flows benefit companies in emerging markets.
• Currency Fluctuations: Currency fluctuations can impact the ETF's returns.

Competitors:

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

Expense Ratio:

The fund's expense ratio is 0.75%.

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to invest in a diversified basket of international stocks with the potential for strong growth. It does not track a specific index.
• Composition: The ETF primarily invests in equities, with a focus on large- and mid-cap companies across various sectors.

Key Points:

• Invests in large- and mid-cap companies in developing countries
• Growth-oriented investment strategy
• Strong historical performance and benchmark outperformance
• Actively managed by experienced portfolio managers
• Relatively low expense ratio

Risks:

• Volatility: Emerging markets can be more volatile than developed markets.
• Market Risk: The ETF's performance is tied to the performance of international stock markets.
• Currency Risk: Currency fluctuations can impact the ETF's returns.

Who Should Consider Investing:

INTL is suitable for investors seeking long-term capital appreciation and comfortable with the inherent risks associated with emerging markets. It aligns with investors with a growth-oriented investment strategy and a time horizon of at least five years.

Fundamental Rating Based on AI:

7/10

INTL's strong financial performance, experienced management team, and unique investment approach are positive factors. However, the ETF's exposure to emerging markets and associated volatility present some risks. Overall, INTL has solid fundamentals and could be a valuable addition to a diversified investment portfolio.

Resources:

• https://www.matthews.com/en/us/etfs/intl
• https://www.morningstar.com/etfs/arco/intl/quote
• https://finance.yahoo.com/quote/INTL/
• https://www.investopedia.com/terms/e/emergingmarkets.asp

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Always conduct thorough research and consult with a qualified financial professional before making any investment decisions.