An active Matthews Asia ETF that has been available to investors for just three months already appears to be attracting institutional money, a notable development in the ETF industry.
The Matthews Asia Innovators Active ETF (MINV) saw tremendous trading volume midday on October 14, 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.
Matthews Asia is a preeminent manager focused on emerging markets, offering advisors access to the lucrative asset class through active strategies. The firm launched its first ETFs in July, debuting three active ETFs based on existing mutual fund strategies: the Matthews Emerging Markets Equity Active ETF (MEM), the Matthews China Active ETF (MCH), and MINV.
Digging into the details, nearly 520 thousand shares of MINV were traded on October 14, and about 31 thousand shares were exchanged the next trading day, October 17. The fund’s average volume over a one-month period is 30,495, increasing significantly in the past week. MINV has $4.2 million in assets, highlighting the liquidity available in ETFs regardless of size.
MINV’s share price had increased by 3% by market close on Monday. Increased trading volume, accompanied by rising prices or an upward trend, indicates strong interest in a security, signaling a buying opportunity for investors.
“Some growth companies in China are trading at low valuations,” Michael Oh, portfolio manager at Matthews Asia, said. “If you can stomach the volatility, this is a good time to invest.”
With a high conviction and a concentrated equity portfolio, MINV invests 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.
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