Matthews China Active ETF (MCH)

Overview

The Matthews China Active ETF (MCH) is an actively managed ETF focused on investing in Chinese companies. It aims to outperform the broader Chinese equity market by selecting stocks based on fundamental research and a long-term investment horizon. The ETF's asset allocation primarily consists of equities across various sectors within China.

Reputation and Reliability

Matthews Asia is a well-regarded investment manager specializing in Asian markets, with a long history of investing in the region. They are known for their on-the-ground research and experienced investment team.

Management Expertise

The management team consists of experienced portfolio managers and analysts with in-depth knowledge of the Chinese market and a proven track record of investing in Asia.

Goal

The primary investment goal of MCH is to achieve long-term capital appreciation by investing in Chinese companies.

Investment Approach and Strategy

Strategy: MCH employs an active management strategy, selecting stocks based on fundamental research and a bottom-up approach, rather than tracking a specific index.

Composition The ETF primarily holds stocks of Chinese companies across various sectors, with the flexibility to adjust the portfolio based on market conditions and investment opportunities.

Market Share: MCH has a moderate market share among China-focused active ETFs.

Total Net Assets (AUM): 84510384

Key Competitors

• Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
• iShares MSCI China ETF (MCHI)
• KraneShares CSI China Internet ETF (KWEB)

Competitive Landscape

The China ETF market is highly competitive, with a mix of passive and active ETFs. MCH differentiates itself through its active management and focus on fundamental research. While its AUM may be smaller than some of the larger passive ETFs like ASHR and MCHI, its active approach provides the potential for outperformance, though at a higher expense ratio.

Historical Performance: Historical performance data is not provided in this data, but will vary depending on the time period. Reviewing the ETF's past returns will provide insights into its performance track record.

Benchmark Comparison: Comparing MCH's performance against benchmarks such as the MSCI China Index helps assess the value added by its active management strategy.

Expense Ratio: 0.79

Average Trading Volume

The average trading volume of MCH is moderate, reflecting its AUM and investor interest.

Bid-Ask Spread

The bid-ask spread is typically reasonable, but it can fluctuate depending on market conditions and trading activity.

Market Environment Factors

Economic indicators in China, sector growth prospects, regulatory changes, and global market conditions all influence MCH's performance.

Growth Trajectory

MCH's growth trajectory depends on the overall performance of the Chinese economy, investor sentiment towards China, and the success of its active management strategy; changes to strategy and holdings are regularly reported.

Competitive Edge

MCH's competitive edge lies in its active management approach and Matthews Asia's expertise in Asian markets. The fund's investment team conducts in-depth fundamental research to identify undervalued companies with strong growth potential. This active approach allows the fund to adapt to changing market conditions and potentially outperform passive China ETFs. Furthermore, the fund is able to consider ESG factors and actively manage its portfolio based on environmental, social, and governance metrics.

Volatility

MCH's volatility is expected to be moderate to high, reflecting the inherent volatility of the Chinese equity market.

Market Risk

MCH is subject to market risk, including economic and political risks specific to China, currency fluctuations, and regulatory changes.

Ideal Investor Profile

The ideal investor for MCH is someone seeking long-term capital appreciation through exposure to Chinese equities, who is comfortable with the risks associated with emerging markets and an active investment strategy.

Market Risk

MCH is suitable for long-term investors who are willing to accept higher risk in exchange for the potential for higher returns. It is not ideal for risk-averse investors or those seeking short-term gains.

The Matthews China Active ETF (MCH) is an actively managed ETF investing in Chinese companies, aiming for long-term capital appreciation. The fund utilizes bottom-up fundamental research to select stocks, differentiating itself from passive China ETFs. It offers the potential for outperformance but comes with a higher expense ratio and the risks associated with active management and the Chinese market. MCH is suitable for long-term investors comfortable with volatility and seeking exposure to Chinese equities.

Data Sources:

• Matthews Asia website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data may be approximate. Investors should conduct their own due diligence before making any investment decisions.