When investing in emerging markets, Matthews Asia’s head of portfolio strategy David Dali said at Exchange 2023 that active management is key.
“Our benchmarks tend to be blind to things like corporate governance and regulatory issues and geopolitics,” Dali told NYSE’s Judy Shaw. “So, it’s super important to go active.”
In the eight months prior to Exchange, Matthews Asia launched four active ETFs. And according to Dali, the firm did this for several reasons.
“Number one, we wanted to bring at least a few of our best-performing mutual funds to the active ETF wrapper,” he said. “Secondly, we wanted to really create building blocks for investors to customize their EM exposure.
See more: “Matthews Asia Launches 3 Active ETFs Focused on Emerging Markets, Asia, and China“
For example, for investors who don’t want any direct China exposure, there’s the Matthews Emerging Markets ex-China Active ETF (MEMX). There’s also the firm’s flagship Matthews Emerging Markets Equity Active ETF (MEM). And for investors wanting “a little bit more growth in hopes of slightly higher returns,” there’s the Matthews Asia Innovators Active ETF (MINV).
Finally, there’s the Matthews China Active ETF (MCH), for “investors that really believe in the long-term structural story of China.”
“So, a great lineup and really good building blocks for investors,” Dali said.
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