The future of innovation in Asia is bright; Add exposure with MINV | So Good News
Investors seeking a thematic and concentrated approach to exposure to emerging markets should consider the Matthews Asia Innovators Active ETF (MINV)it offers exposure to innovation in Asia.
Now is a great time to add exposure as Asian economies recover from global inflationary tailwinds and innovation continues to grow.
Michael O, Portfolio Manager, Matthews Asia, said in his comment in September The most important market for MINV is still China, which accounts for more than half of the portfolio.
“It has had its challenges of late, but we think the valuations are attractive to offset those issues, many of which are temporary,” Oh said. “Geopolitical risks remain, but we think the domestic growth story will be enough to find great opportunities in China. In the short term, we think China will remain the biggest deviation factor and may have the highest potential.”
Oh, and the EV space looks pretty interesting too, noting that EV penetration will continue even as the global economy slumps. The firm also expects continued investment in the consumer discretionary and healthcare sectors.
“We continue to see healthy growth in Internet companies. It is far from a niche market,” said O. “Culturally, the Internet has become a big part of everyday life for the Asian consumer, and it will grow.”
That said, there are clear growth drivers for digital consumer services, with fintech booming in Southeast Asia and India, where physical banking infrastructure is poor and as a result, more consumers are fully embracing digital finance.
MINV is a highly reliable and concentrated equity portfolio that invests in innovative companies in Asia ex-Japan, driving new economy and disposable income growth in the region. The fund takes a fully fundamental approach and targets companies with unique propositions that create or expand markets.
Matthews Asia launched two more active ETFs based on mutual fund strategies in July, including Matthews Emerging Markets Equity Active ETF (MEM) and Matthews China Active ETF (MCH).
For more news, information and strategy, visit here Emerging Markets Channel.