INDE: MATTHEWS INDIA ACTIVE ETF
What this ETF is trying to do
The MATTHEWS INDIA ACTIVE ETF (ticker: INDE) is an exchange-traded fund that focuses on active management within the Indian market. It holds a variety of different companies to carry out its strategy. According to the most recent data, the fund holds 77 different companies in total.
What the numbers show
When looking at how this ETF has performed, it is important to look at two different types of returns: price return and total return. Price return only tracks the change in the share price, while total return includes both price changes and distributions.
• Year-to-Date (YTD): The YTD price return is approximately -3.39%. For this specific period, the total return is also -3.39%.
• One-Year: The one-year price return was approximately -3.46%. However, the one-year total return was approximately -1.74%.
• Three-Year: Over a three-year period, the fund showed growth. The three-year price return was approximately 15.82%, and the three-year total return was approximately 18.55%.
Based on an estimated price from roughly one year ago of $30.03, the current price is $28.99.
Income and distribution explanation
This ETF provides some level of cash income through distributions. The current distribution yield is approximately 1.82%. This means the amount of cash distributed is about 1.82% relative to the ETF's price.
The distribution frequency for this fund is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the frequency is irregular, investors should not expect a steady monthly or quarterly check.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). It is important to distinguish between a falling market price and NAV erosion. While the share price has declined recently, a falling price does not always mean the NAV is declining.
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag present.
Pros
• Long-term growth: The three-year total return of approximately 18.55% shows positive performance over a longer timeframe.
• Stable risk profile: The erosion-risk score suggests the fund's price movement has been relatively stable or sideways rather than showing extreme deterioration.
Cons
• Recent price decline: The fund has experienced a share-price decline over the last year and year-to-date.
• Lower income rating: The fund has an income rating grade of "D," suggesting it may not be a primary choice for those seeking high levels of regular cash flow.
Top Holdings
The following are some of the top holdings in the portfolio (note that this list is partial):
• ETERNAL LTD: 9.27%
• HDFC BANK LTD: 6.23%
• ICICI BANK LTD: 5.64%
• NEULAND LABORATORIES LTD: 4.46%
• BAJAJ FINANCE LTD: 3.72%
*Holdings can change over time.*
Beginner takeaway
For a new investor, INDE shows that an ETF can have different results depending on how long you look at it. While it has faced some price declines recently, its three-year history shows positive total returns. Also, remember that a distribution yield tells you about cash payments, but it does not guarantee the share price will stay the same.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ETERNAL LTD | n/a | 9.27% |
| 2 | HDFC BANK LTD | n/a | 6.23% |
| 3 | ICICI BANK LTD | n/a | 5.64% |
| 4 | NEULAND LABORATORIES LTD | n/a | 4.46% |
| 5 | BAJAJ FINANCE LTD | n/a | 3.72% |
| 6 | BHARTI AIRTEL LTD | n/a | 3.00% |
| 7 | ATHER ENERGY LTD | n/a | 2.51% |
| 8 | SWIGGY LTD | n/a | 2.50% |
| 9 | SHRIRAM FINANCE LTD | n/a | 2.45% |
| 10 | AXIS BANK LTD | n/a | 2.41% |