Matthews International Funds (MKOR)

Overview

Matthews International Funds offers a range of actively managed ETFs focusing primarily on Asian markets. These ETFs aim to provide long-term capital appreciation by investing in companies with strong growth potential in the Asia Pacific region, excluding Japan. They typically focus on fundamental research to identify quality companies.

Reputation and Reliability

Matthews Asia is a well-regarded investment manager specializing in Asian markets with a long history and established reputation.

Management Expertise

Matthews Asia has a team of experienced investment professionals with deep knowledge of Asian economies and companies.

Goal

To achieve long-term capital appreciation by investing in Asian equities, excluding Japan.

Investment Approach and Strategy

Strategy: Actively managed, bottom-up stock selection based on fundamental research.

Composition Primarily holds stocks of companies located in or economically tied to the Asia Pacific region, excluding Japan.

Market Share: Market share varies by specific ETF within the Matthews International Funds family and the particular Asian market segment it targets. Data on a fund family's collective market share can be obtained from ETF industry analysis reports.

Total Net Assets (AUM): Varies by individual ETF within the Matthews International Funds family. Specific AUM data should be collected for each fund.

Key Competitors

• VWO
• IEMG
• EEM
• ASHR
• MCHI

Competitive Landscape

The ETF industry is highly competitive, with numerous funds targeting emerging markets. Matthews Asia differentiates itself through its exclusive focus on Asian markets and active management approach. However, it faces competition from larger, passively managed funds with lower expense ratios, requiring Matthews to demonstrate superior performance to justify its active management fees. Its active management strategy could also lead to underperformance compared to broad market indices during certain periods.

Historical Performance: Requires retrieving historical data for specific ETFs to provide meaningful numerical data. This should include annual returns, standard deviation, and Sharpe ratio over various time periods (e.g., 1 year, 3 years, 5 years, 10 years).

Benchmark Comparison: Compare the returns and risk-adjusted returns of the ETF to relevant benchmarks such as the MSCI AC Asia ex Japan Index. Provide a table comparing annual returns and tracking error.

Expense Ratio: Requires specific ETF data. Expense ratios vary for each ETF.

Average Trading Volume

Average trading volume varies widely depending on the specific ETF and its popularity; consult current market data for specific values.

Bid-Ask Spread

The bid-ask spread is typically related to the average trading volume, with more liquid ETFs having tighter spreads; refer to current market data for a specific ETF.

Market Environment Factors

Economic growth in Asia, trade relations, political stability, currency fluctuations, and interest rate policies all influence Matthews International Funds. Furthermore, sector-specific trends within Asian economies, such as technology or consumer discretionary, can impact performance.

Growth Trajectory

Growth trends depend on economic growth in Asia, investor sentiment towards emerging markets, and the success of the fund's active management strategy. Changes in portfolio holdings will be dictated by their research and conviction towards specific companies and sectors.

Competitive Edge

Matthews Asia's competitive edge lies in its deep expertise and long history focusing exclusively on Asian markets. Its active management strategy, driven by bottom-up fundamental research, allows them to identify undervalued companies with strong growth potential that may be overlooked by passive index funds. This dedicated regional focus and active approach aim to generate alpha for investors. They also have a strong local presence and network across Asia, allowing them to gain on-the-ground insights into the companies they invest in.

Volatility

Volatility depends on the specific ETF and the market conditions in Asia. Emerging market ETFs are generally more volatile than developed market ETFs.

Market Risk

Specific risks associated with Matthews International Funds include political risks, currency risks, and regulatory risks in the Asian countries they invest in. Market risk also includes broad economic downturns in Asia or globally which could negatively affect their holdings.

Ideal Investor Profile

Investors seeking long-term capital appreciation and willing to accept the risks associated with investing in Asian equities. Investors who believe in active management and the potential for outperformance through fundamental research.

Market Risk

Best suited for long-term investors who are comfortable with emerging market risks and are seeking exposure to Asian growth opportunities.

Matthews International Funds offers actively managed ETFs focused on Asian equities, excluding Japan, aiming for long-term capital appreciation. Their competitive advantage stems from their deep expertise and focus on Asian markets, conducting bottom-up fundamental research to identify undervalued companies. Emerging market risks and higher expense ratios associated with active management should be considered. These funds are best suited for long-term investors seeking targeted exposure to Asia and willing to tolerate higher volatility in pursuit of above-average returns.

Data Sources:

• Matthews Asia website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.