Matthews International Funds (INDE)

Overview

Matthews International Funds are a suite of ETFs focusing on providing investors access to the growth potential of Asia and other emerging markets. They primarily invest in equity securities of companies located in these regions, employing active management strategies to seek long-term capital appreciation.

Reputation and Reliability

Matthews Asia is a well-established investment manager specializing in Asian markets with a long track record and strong reputation.

Management Expertise

The management team comprises experienced investment professionals with deep knowledge of Asian markets and a proven ability to navigate their complexities.

Goal

To achieve long-term capital appreciation by investing in companies located in Asia and other emerging markets.

Investment Approach and Strategy

Strategy: The ETFs employ an active management strategy, conducting in-depth fundamental research to identify companies with strong growth prospects and sustainable competitive advantages.

Composition The assets held are primarily stocks of companies located in Asia and other emerging markets. Sector allocation will vary based on investment strategy and opportunities identified.

Market Share: Market share varies significantly depending on the specific fund and its target market within the broader emerging markets ETF space.

Total Net Assets (AUM): AUM will vary across the suite of Matthews International Funds ETFs. Refer to the most recent fund fact sheets for the specific AUM figures.

Key Competitors

• VWO
• IEMG
• EEM
• ASHR

Competitive Landscape

The emerging markets ETF landscape is highly competitive, dominated by large passive funds like VWO and IEMG. Matthews offers actively managed strategies, potentially providing higher returns but also higher fees. Their advantage lies in in-depth regional expertise, while a disadvantage includes potentially higher volatility compared to diversified index funds.

Historical Performance: Historical financial performance varies greatly between each individual Matthews International Funds ETF depending on the underlying holdings. Performance data should be sourced from the official fund factsheet or prospectus.

Benchmark Comparison: Benchmark comparison is crucial for evaluating the success of an actively managed fund. Investors should compare each fund against a relevant emerging market benchmark (e.g., MSCI Emerging Markets Index).

Expense Ratio: Expense ratios will vary depending on the specific fund. Investors should reference fund documentation to confirm the exact expense ratio.

Average Trading Volume

Average trading volume depends on the fund, but is generally lower than broad-market ETFs.

Bid-Ask Spread

Bid-ask spreads vary; they tend to be slightly wider than those of more liquid, broad-market ETFs.

Market Environment Factors

Economic indicators, geopolitical events, and regulatory changes in emerging markets, as well as global market sentiment, significantly impact the funds' performance.

Growth Trajectory

Growth depends on Asian and emerging market economic growth, investment strategies employed by Matthews, and investor appetite for emerging market exposure.

Competitive Edge

Matthews International Funds' primary competitive advantage is its specialized expertise in Asian and emerging markets. They have a dedicated research team with deep local knowledge, which they believe allows them to identify undervalued companies with strong growth potential. The active management approach differentiates them from passive index funds, and their focus on long-term capital appreciation aims to deliver superior returns over time. This targeted approach is expected to result in a low turnover of holdings and cost saving.

Volatility

Volatility can be higher than developed market ETFs due to political and economic instability in emerging markets.

Market Risk

Market risk is primarily associated with the specific sectors and countries in which the funds invest. Factors include currency fluctuations, regulatory changes, and macroeconomic conditions.

Ideal Investor Profile

The ideal investor is seeking long-term capital appreciation and has a high-risk tolerance, willing to accept potential volatility in exchange for higher returns. This investor should be looking for dedicated exposure to the Asian and emerging markets.

Market Risk

Suited for long-term investors willing to accept higher risk and volatility for potentially higher returns; less suitable for short-term traders or risk-averse investors.

Matthews International Funds provide investors with exposure to the high-growth potential of Asian and emerging markets through active management. Their specialized expertise and in-depth research aim to identify undervalued companies and deliver superior long-term returns. However, investors should be aware of the higher risk and volatility associated with emerging markets. These funds are best suited for long-term investors with a high-risk tolerance seeking geographically targeted exposure that offers differentiated investment strategy. Their active management approach distinguishes them from many other competitors within the broader ETF landscape.

Data Sources:

• Matthews Asia Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and fund performance can change rapidly. Please consult with a financial advisor before making any investment decisions.