Matthews Asia’s new ETF offering exposure to Asia innovators has seen a significant pickup in trading volume and flows in the past month.
Incepted in mid-July, the Matthews Asia Innovators Active ETF (MINV) has picked up considerable steam in the past month, even garnering attention from institutional investors.
MINV saw $18 million in inflows between October 4 and November 4, bringing the fund’s total assets under management to $22 million, according to VettaFi.
Activity first picked up on October 14, when MINV saw tremendous trading volume midday, demonstrating institutional demand for active ETFs and confidence in Matthews’ ability to sort through the emerging market universe, according to Todd Rosenbluth, head of research at VettaFi.
Nearly 520 thousand shares of MINV were traded on October 14. The fund saw another big trading day on October 20, in which 146 thousand shares were traded.
As of November 7, the fund’s average volume over one month was 38,777, compared to 30,495 as of October 18. This is a notable uptick considering the age and size of the ETF, highlighting the liquidity available in ETFs.
MINV has returned -3.08% over a one-month period, according to VettaFi. Growth companies in China are trading at low valuations, creating an opportunity for long-term investors to get in at a reasonable price.
MINV is a high-conviction and concentrated equity portfolio, investing in innovative companies in Asia ex-Japan, capitalizing on the new economy and rising disposable income in the region. The fund takes an all-cap fundamental approach and is focused on companies with unique offerings that create or expand markets.
Matthews Asia launched a trio of active ETFs based on existing mutual fund strategies in July, including the Matthews Emerging Markets Equity Active ETF (MEM), the Matthews China Active ETF (MCH), and MINV.
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