Martin Currie Sustainable International Equity ETF (MCSE)

Overview

The Martin Currie Sustainable International Equity ETF (MCSI) seeks long-term growth of capital by investing in a diversified portfolio of international equity securities of companies that meet certain environmental, social, and governance (ESG) criteria.

Reputation and Reliability

Martin Currie Investment Management has a long history in global investing and is known for its focus on sustainable and responsible investment strategies.

Management Expertise

The management team possesses extensive experience in international equity investing with a specific focus on ESG integration.

Goal

To achieve long-term capital growth by investing in a portfolio of international equity securities with strong ESG profiles.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy, selecting securities based on their financial merit and ESG performance.

Composition The ETF primarily holds international stocks, excluding the United States and Canada. The fund also considers the UN Sustainable Development Goals.

Market Share: The ETF's market share within the broader international sustainable equity ETF category is relatively small but growing.

Total Net Assets (AUM): 23350000

Key Competitors

• VEU
• VXUS
• ESGU

Competitive Landscape

The international sustainable equity ETF market is highly competitive, with major players like Vanguard and iShares dominating. MCSI differentiates itself through its active management and focused ESG selection process, which may offer the potential for outperformance but also introduces additional risks. Compared to broad market ETFs, MCSI potentially offers higher returns, but also with greater potential losses.

Historical Performance: Historical performance data is not available because it is relatively new.

Benchmark Comparison: Performance data is not available due to a lack of history.

Expense Ratio: 0.08

Average Trading Volume

MCSI's average trading volume is moderate, which can impact execution costs, especially for large trades.

Bid-Ask Spread

MCSI's bid-ask spread is variable, and investors should check current spreads before trading.

Market Environment Factors

Economic growth in developed and emerging markets outside the U.S., interest rate policies, and geopolitical events impact MCSI. Investor sentiment toward sustainable investing also drives demand.

Growth Trajectory

Growth trends include increased adoption of sustainable investing strategies, and potential for increased asset flows as ESG mandates expand, although this is reliant on maintaining competitive performance.

Competitive Edge

MCSIu2019s competitive advantage lies in its active management approach and rigorous ESG screening process. The fund combines financial analysis with ESG factors to select companies, which may offer a unique approach compared to passively managed ETFs. Its smaller size also allows for more flexibility to focus on niche areas within the international market. The team's expertise in sustainable investing and a strong track record is a unique differentiating factor.

Volatility

Due to the fund's focus on international equities, MCSI's volatility can be influenced by global market events and currency fluctuations.

Market Risk

Specific risks include economic slowdowns in key international markets, sector-specific downturns, and potential underperformance of the ESG investment strategy compared to broad market indices.

Ideal Investor Profile

The ideal investor for MCSI is someone seeking long-term capital appreciation, has a high tolerance for risk, and is interested in sustainable and responsible investing.

Market Risk

MCSI is suitable for long-term investors who believe in the potential for ESG-focused strategies to generate superior returns over time. It is less suitable for active traders seeking short-term gains.

Martin Currie Sustainable International Equity ETF provides investors with exposure to international equities through a sustainable lens. With an expense ratio of 0.08%, the ETF offers a cost-efficient way to pursue long-term growth. The actively managed strategy and focused ESG selection process distinguishes it from passive competitors. Performance is unproven due to the ETF's young existence, and investors should monitor its performance against its benchmark index and comparable funds.

Data Sources:

• Martin Currie Investment Management website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results. Market share estimates may vary depending on the data source.