Matthews Asia has launched five new actively managed emerging market ETFs on the New York Stock Exchange. The firm’s full suite of transparent active ETF strategies will be similar to its existing mutual funds.
“Sophisticated investors have long sought emerging market exposure, for returns and diversification,” said Matthews Asia CEO Cooper Abbott. “After a period of under-allocation, institutions and professional investors are … adding more customized emerging market exposures to their portfolios.”
- The Matthews Pacific Tiger Active ETF (ASIA ) seeks to invest in high-quality growth companies in Asia (ex-Japan).
- The Matthews India Active ETF (INDE ) is a single-country all-cap fund. It targets innovative and entrepreneurial businesses across sectors and themes believed to benefit from the country’s long-term structural growth drivers.
- The Matthews Japan Active ETF (JPAN ) is a single-country all-cap high-conviction fund. It seeks to invest in companies that are domestic, regional, and global leaders in their sector.
- The Matthews Asia Dividend Active ETF (ADVE ) is a core regional fund. It targets growth companies in Asia Pacific with lower volatility.
- The Matthews Emerging Markets Sustainable Future Active ETF (EMSF ) is an unconstrained, high-conviction all-cap fund. It seeks to invest in companies focused on making positive environmental, social, and economic impact within global emerging markets.
“We believe these new active ETFs provide sophisticated investors with the power of choice to selectively express their investment views,” Abbott added.
Active Management in Emerging Market ETFs
When investing in emerging markets, Matthews Asia’s head of portfolio strategy David Dali said that active management is key. “Our benchmarks tend to be blind to things like corporate governance and regulatory issues and geopolitics,” he said at Exchange 2023. “So, it’s super important to go active.”
“Advisors have been embracing actively managed ETFs in 2023,” said VettaFi’s head of research Todd Rosenbluth. “Matthews Asia successfully launched active international equity ETFs in 2022, bringing some of their best strategies into the ETF market.”
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