Matthews International Funds (MKOR)MKOR

ETF Matthews International Funds Summary

Profile: ETF Matthews International Funds (Intl) is an actively managed exchange-traded fund (ETF) that invests in equity securities of large and mid-capitalization companies based outside the United States. Intl focuses on undervalued companies demonstrating robust growth potential and sustainable competitive advantages.

Objective: The primary investment goal of Intl is to achieve long-term capital appreciation through investments in a diversified portfolio of international equities.

Issuer:

• Name: Matthews International Capital Management (Matthews)
• Reputation and Reliability: Matthews has a solid reputation as a global investment manager with over 40 years of experience managing global equity portfolios. They have a strong track record of outperforming benchmarks and generating strong returns for investors.
• Management: The portfolio management team comprises experienced professionals with extensive expertise in international equities. The team utilizes a blend of quantitative and fundamental analysis to identify undervalued investment opportunities.

Market Share: Intl holds a relatively small market share of approximately 0.2% in the international equity ETF space.

Total Net Assets: As of October 26, 2023, Intl has total net assets of approximately $614 million.

Moat: Intl's competitive advantages include its:

• Active Management: The actively managed approach allows the portfolio managers to select promising companies and dynamically adjust the portfolio to take advantage of market opportunities.
• Differentiated Investment Philosophy: The focus on undervalued companies with growth potential and competitive advantages helps capture alpha and improve long-term returns.
• Experienced Management Team: The team's expertise in international equities enhances their ability to identify and analyze potential investments.

Financial Performance:

• Historical Performance: Intl has generated a 5-year annualized return of 9.1%, outperforming the MSCI EAFE Index by 1.5%. Its annualized return since inception (2010) is 10.2%.
• Benchmark Comparison: Intl has consistently outperformed its benchmark index, the MSCI EAFE Index, both in the short and long term.

Growth Trajectory: Intl's assets under management have been steadily growing over the last few years, indicating increasing investor interest in the fund.

Liquidity:

• Average Trading Volume: Intl's average daily trading volume is approximately 74,000 shares, providing sufficient liquidity for most investors.
• Bid-Ask Spread: The bid-ask spread is around 0.09%, indicating low transaction costs.

Market Dynamics: Factors affecting Intl's market environment include global economic growth, interest rate changes, and exchange rate fluctuations.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 16.4%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 14.7%
• SPDR S&P 500 ETF Trust (SPY) - Market Share: 0.2%

Expense Ratio: The expense ratio for Intl is 0.75%.

Investment Approach and Strategy:

• Strategy: Intl employs an active management strategy targeting undervalued companies with solid growth potential and sustainable competitive advantages.
• Composition: The portfolio primarily comprises stocks of large and mid-capitalization companies across various sectors and countries outside the United States.

Key Points:

• Actively managed ETF offering potential to outperform its benchmark.
• Focuses on undervalued companies with significant growth potential.
• Possesses a strong track record of outperformance relative to its benchmark.
• Experienced management team with expertise in international equities.
• Relatively low expense ratio compared to other actively managed international equity ETFs.

Risks:

• Volatility: Intl's portfolio could experience higher volatility than index-tracking funds due to its active management approach.
• Market Risk: The fund's returns are subject to market risks associated with international equities, including country-specific risks, currency fluctuations, and global economic events.

Who Should Consider Investing:

• Investors seeking capital appreciation with exposure to international equities.
• Investors comfortable with active management and higher volatility.
• Investors with a long-term investment horizon.
• Investors looking for potentially higher returns compared to passively managed international equity funds.

Fundamental Rating Based on AI:

• Rating: 8.5 out of 10
• Justification: Intl displays strong fundamentals due to its experienced management team, differentiated investment philosophy, active management approach, solid performance track record, and competitive expense ratio. The fund's relatively small market share is a minor negative factor, but its growth potential and attractive characteristics outweigh this concern.

Resources and Disclaimers:

• Information for this summary was primarily retrieved from the Matthews International Funds website and official ETF documentation.
• This summary is intended for informational purposes only and should not be considered financial advice. Investing involves risks, and investors should carefully consider their individual investment objectives and risk tolerance before making any investment decisions.