Active Emerging Markets ETFs Outperform in November | ETF Trends

In an overall good month for markets, active emerging markets ETFs stood out in November for particularly strong performance.

While this year has seen a downdraft in global markets that has affected nearly all regions and asset classes, global markets staged impressive rebounds during November.

Matthews Asia offers three active ETFs offering exposure to different segments of the emerging markets asset class. The lineup includes the Matthews China Active ETF (MCH). the Matthews Asia Innovators Active ETF (MINV), and the  Matthews Emerging Markets Equity Active ETF (MEM), all of which posted impressive returns in November.

MCH returned an impressive 26.3% during November, beating its benchmark, the MSCI China Index, by 379 basis points during the month. Over the past three months, MCH has declined just -0.6% compared to the benchmark’s decline of -8.1%, as of November 30.

MCH is a high-conviction equity portfolio that seeks companies benefiting from China’s domestic consumption. MCH uses an all-cap fundamental GARP approach driven by proprietary research and combines long-term core holdings with more opportunistic ideas to provide consistency through cycles.

MINV returned 18.9% in November, beating the benchmark MSCI All Country Asia Ex Japan by 339 basis points. MINV has declined -2.1% while the benchmark has declined -3.0% over three months.

MINV, a high-conviction, concentrated equity portfolio, invests in innovative companies in Asia ex-Japan, capitalizing on the new economy and rising disposable income in the region. MINV is worth consideration for investors who want a more thematic and concentrated approach.  

MEM returned 12.1% last month, beating the MSCI Emerging Markets Index by 26 basis points. Over three months, the margin between returns widens significantly: MEM has gained 5% while the benchmark has declined -2.2%.

MEM invests in emerging market companies with perceived sustainable growth potential, capitalizing on consumption and innovation trends. The fund utilizes an all-cap, company-first approach, which emphasizes fundamental research over top-down country or sector allocation.  

MCH, MINV, and MEM each charge 79 basis points.

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