What are the best Matthews ETFs?
6 min read
By Ron Koren, ETF Insider

What are the best Matthews ETFs?

In this article, we explore the realm of Matthews ETFs and identify some of the top performers in this investment category. Whether you're an experienced investor seeking to diversify your portfolio or a newcomer to the world of ETFs, we will provide valuable insights into the best Matthews ETFs that can potentially enhance your investment strategy.

Matthews Asia Small Companies Fund (MCOS)

Matthews Asia Small Companies Fund (MCOS) is one of the standout ETFs offered by Matthews. This fund focuses on investing in small-cap companies in the Asia region. MCOS aims to provide long-term capital appreciation by selecting high-quality, growing companies with strong competitive positions and sound financials. The fund seeks to identify opportunities in countries such as China, India, Taiwan, South Korea, and Southeast Asian nations. MCOS offers investors exposure to the potential growth of small companies in the dynamic Asian market.

When comparing MCOS with similar ETFs, one notable competitor is the iShares MSCI All Country Asia ex Japan Small-Cap ETF (AXJS). While both ETFs target small-cap companies in Asia, they have different investment strategies and geographic exposures. MCOS specifically focuses on Asian small-cap companies, while AXJS includes small-cap companies across the entire Asia ex Japan region. Investors should carefully consider their investment goals and preferences before choosing between these two options.

MCOS overlap What are the best Matthews ETFs?MCOS overlap What are the best Matthews ETFs?

Why invest in Matthews ETFs?

Matthews Asia, an asset management firm specializing in Asia-focused investments, offers a range of ETFs that cater to investors interested in the Asian market. Investing in Matthews ETFs provides several advantages:

Expertise in the Asian market: Matthews Asia has a deep understanding of the Asian region, with a dedicated team of investment professionals who conduct extensive research and analysis. Their expertise allows them to identify attractive investment opportunities in Asian markets.

Focus on long-term growth: Matthews ETFs are designed for investors seeking long-term growth potential. Many of their funds target companies positioned to benefit from the economic growth and demographic trends in Asia.

Diversification: Matthews ETFs offer diversification benefits by investing across different countries, sectors, and market capitalizations within the Asian market. This helps mitigate risk and provides exposure to a broad range of opportunities.

Are Matthews ETFs suitable for all investors?

While Matthews ETFs can be attractive for investors seeking exposure to the Asian market, it's important to consider individual investment objectives, risk tolerance, and time horizon. Matthews ETFs primarily focus on Asian equities, which can be subject to volatility and unique risks associated with emerging markets.

Investors interested in Matthews ETFs should carefully review each fund's investment strategy, holdings, performance history, and expense ratios. It's also recommended to consult with a financial advisor to determine if Matthews ETFs align with their overall investment plan.

What factors should investors consider when comparing Matthews ETFs?

When comparing Matthews ETFs, investors should consider the following factors:

Investment objective: Each Matthews ETF has a specific investment objective, such as targeting small-cap companies, dividend-paying stocks, or specific countries in Asia. Investors should align their investment goals with the fund's objective.

Expense ratio: The expense ratio is an important consideration as it directly impacts the net return to investors. Lower expense ratios can contribute to higher overall returns over the long term.

Historical performance: Investors should review the historical performance of Matthews ETFs to assess their track record and consistency. However, past performance is not indicative of future results.

Fund size and liquidity: Larger and more liquid ETFs tend to have tighter bid-ask spreads and lower trading costs. Investors should consider the fund's assets under management (AUM) and trading volume when evaluating liquidity.

In conclusion, Matthews Asia offers a range of ETFs that provide exposure to the Asian market, with the Matthews Asia Small Companies Fund (MCOS) being one notable option. Investors interested in Matthews ETFs should carefully consider their investment objectives, risk tolerance, and perform due diligence to choose the most suitable funds for their portfolios.

Disclaimer: This article is for informational purposes only and is not providing any investment advisory services. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.

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FAQ

  • What is Matthews International Capital Management?

    Matthews International Capital Management is an investment management firm specializing in Asian and global equity strategies. They offer a range of ETFs focused on Asian markets.

  • What are ETFs offered by Matthews?

    Matthews offers several ETFs that provide exposure to Asian markets. Some of their ETFs include the Matthews Asia Innovators ETF (MATI), Matthews Asia Small Companies ETF (SMCP), and Matthews Asia Technology Innovators ETF (MATK), among others.

  • What are the investment objectives of Matthews ETFs?

    The investment objectives of Matthews ETFs vary depending on the specific fund. However, in general, Matthews ETFs aim to provide investors with exposure to Asian markets and companies, focusing on various sectors and market segments.

  • How are Matthews ETFs different from other Asian-focused ETFs?

    Matthews ETFs are known for their focus on long-term growth opportunities in Asian markets. They employ an active management approach, conducting extensive research and analysis to identify potential investment opportunities.

  • What are the key considerations when investing in Matthews ETFs?

    When considering investing in Matthews ETFs, it's important to assess factors such as the fund's investment strategy, performance track record, expense ratio, holdings, sector allocations, and overall risk profile. Conducting thorough research and understanding your investment goals and risk tolerance is crucial.