Under normal circumstances, the Matthews Emerging Markets Equity Active ETF seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund may also invest in companies located in developed countries; however, the Fund may not invest in any company located in a developed country if, at the time of purchase, more than 20% of the Fund’s assets are invested in developed market companies.
Risks
Investments in emerging and frontier securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier markets countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
These and other risks associated with investing in the Fund can be found in the
prospectus.
Emerging Markets - Countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe
Fees & Expenses
Gross Expense Ratio
0.79%
Objective
Long-term capital appreciation
Strategy
Under normal circumstances, the Matthews Emerging Markets Equity Active ETF seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe. Certain emerging market countries may also be classified as “frontier” market countries, which are a subset of emerging market countries with newer or even less developed economies and markets, such as Sri Lanka and Vietnam. The list of emerging market countries and frontier market countries may change from time to time. The Fund may also invest in companies located in developed countries; however, the Fund may not invest in any company located in a developed country if, at the time of purchase, more than 20% of the Fund’s assets are invested in developed market companies.
Risks
Investments in emerging and frontier securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier markets countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets.
The risks associated with investing in the Fund can be found in the prospectus
NAV & Market Price
(as of 04/22/2024)
NAV
$28.43
NAV Change
+0.29
Market Price
$28.51
Market Price Change
+0.33
Day's Trading Volume
132,659 Shares
Median BID/ASK Spread (30 Day)
0.34% (as of 04/22/2024)
Premium Discount
+0.28%
Number of days at Premium/Discount
2024
2023
Q2
Q1
Premium
10
56
166
Discount
6
4
73
The NAV of an ETF represents the value of all the securities held by the ETF such as shares or bonds and cash minus any liabilities such as Total Expense Ratio (TER), and divided by the number of shares outstanding. An ETF’s market price is the price at which investors can buy or sell an ETF on an exchange. This price may deviate from the NAV of the ETF depending on demand for and supply for the ETF at a point in time.
The Premium/Discount chart shows the difference between the daily market price of the Fund’s shares and the Fund’s net asset value (“NAV”). The daily market price is calculated using the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 pm Eastern time). The vertical axis of the chart shows the premium or discount of the Mid-Point price as a percentage of the NAV. The horizontal axis shows the number of trading days covered by the chart, and each bar in the chart demonstrates how many days the Fund traded within the given premium/discount range. The data presented in the chart and table above represent past performance and cannot be used to predict future results.
Performance
Monthly
Quarterly
Calendar Year
As of 03/31/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Equity Active ETF - MEM
07/13/2022
NAV
3.24%
3.90%
3.90%
8.56%
n.a.
n.a.
n.a.
10.12%
Market Price
3.37%
4.14%
4.14%
8.93%
n.a.
n.a.
n.a.
10.34%
MSCI Emerging Markets Index
2.52%
2.44%
2.44%
8.59%
n.a.
n.a.
n.a.
7.32%
As of 03/31/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Equity Active ETF - MEM
07/13/2022
NAV
3.24%
3.90%
3.90%
8.56%
n.a.
n.a.
n.a.
10.12%
Market Price
3.37%
4.14%
4.14%
8.93%
n.a.
n.a.
n.a.
10.34%
MSCI Emerging Markets Index
2.52%
2.44%
2.44%
8.59%
n.a.
n.a.
n.a.
7.32%
For the years ended December 31st
Name
2023
Matthews Emerging Markets Equity Active ETF - MEM
NAV
7.51%
Market Price
6.93%
MSCI Emerging Markets Index
10.27%
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
Year to Date and Since Inception performance with less than one year of history represents actual performance, not annualized.
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results.Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived.
Net asset value (“NAV”) returns are based on the dollar value of a single share of the ETF, calculated using the value of the underlying assets of the ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times. Total Return reflects the reinvestment of distributions on ex-date for NAV returns and payment date for Market Price returns. The market price of the ETF’s shares may differ significantly from their NAV during periods of market volatility.
Top 10 Holdings
(as of 04/24/2024)
Ticker
Name
SEDOL
Market Value
Shares
% Net Assets
2330
TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.
6889106
$3,769,364
163,000
7.2
700
TENCENT HOLDINGS, LTD.
BMMV2K8
$2,617,239
61,700
5.0
HDB
HDFC BANK, LTD. ADR
2781648
$1,558,010
26,660
3.0
005930
SAMSUNG ELECTRONICS CO., LTD.
6771720
$1,443,278
26,347
2.8
3690
MEITUAN DIANPING CLASS B
BGJW376
$1,319,362
95,200
2.5
FPT
FPT CORP.
B1HMWH6
$1,315,669
298,105
2.5
005935
SAMSUNG ELECTRONICS CO., LTD., PFD.
6773812
$1,195,362
25,945
2.3
FCX
FREEPORT-MCMORAN INC
2352118
$1,142,162
23,800
2.2
TCOM
CTRIP.COM INTERNATIONAL, LTD. ADR
BK1K3N2
$1,125,098
22,288
2.1
GFNORTE
GRUPO FINANCIERO BANORTE-
2421041
$1,087,103
103,800
2.1
000333
MIDEA GROUP CO., LTD. A SHARES
BDVHRJ8
$1,002,266
106,200
1.9
300750
CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. A SHARES
BHQPSY7
$999,232
38,200
1.9
BPAC11
BANCO BTG PACTUAL SA-UNIT
BZBZVC7
$998,487
157,200
1.9
GCC*
GCC SAB DE CV
2946663
$984,806
84,500
1.9
TTE
TOTALENERGIES SE -SPON AD
2898032
$882,353
12,092
1.7
TSM
TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. ADR
2113382
$862,358
6,463
1.6
RELIANC
RELIANCE INDUSTRIES, LTD.
6099626
$852,968
24,357
1.6
KSPI
JSC KASPI.KZ ADR
BJY21K1
$848,262
6,897
1.6
UTCEM
ULTRATECH CEMENT, LTD.
B01GZF6
$841,212
7,354
1.6
DNP
DINO POLSKA SA
BD0YVN2
$829,397
8,694
1.6
IH
INDIAN HOTELS CO LTD
B1FRT61
$813,869
112,247
1.6
600036
CHINA MERCHANTS BANK CO., LTD. A SHARES
BP3R273
$801,297
174,300
1.5
PRIO3
PRIO SA
BYY0144
$800,256
83,900
1.5
BAP
CREDICORP LTD
2232878
$792,535
4,694
1.5
9618
JD.COM INC-CLASS A
BKPQZT6
$792,411
58,250
1.5
IBN
ICICI BANK, LTD. ADR
2569286
$789,962
30,048
1.5
WEGE3
WEG SA
2945422
$761,112
103,300
1.5
MBB
MILITARY COMMERCIAL JOINT STOCK BANK
B6SDL09
$741,753
857,905
1.4
9988
ALIBABA GROUP HOLDING, LTD.
BK6YZP5
$738,426
82,900
1.4
BBRI
PT BANK RAKYAT INDONESIA PERSERO
6709099
$737,916
2,258,300
1.4
EMAAR
EMAAR PROPERTIES PJSC
B01RM25
$731,851
320,761
1.4
GLOB
GLOBANT SA
BP40HF4
$691,417
3,824
1.3
VBL
VARUN BEVERAGES LTD
BQLPLZ7
$653,822
38,081
1.2
YUMC
YUM CHINA HOLDINGS, INC.
BYW4289
$633,324
16,510
1.2
AC
AYALA CORPORATION
B09JBT3
$619,820
61,360
1.2
2020
ANTA SPORTS PRODUCTS, LTD.
B1YVKN8
$616,840
55,400
1.2
BUPA
BUPA ARABIA FOR COOPERATI
B2RLCR0
$579,012
9,049
1.1
MWG
MOBILE WORLD INVESTMENT CORP.
BP3RNW5
$574,623
293,600
1.1
INFY
INFOSYS, LTD. ADR
2398822
$564,615
32,903
1.1
000858
WULIANGYE YIBIN CO., LTD. A SHARES
BD5CPG2
$550,788
27,200
1.1
5274
ASPEED TECHNOLOGY INC
B80VKP3
$533,652
6,000
1.0
MELI
MERCADOLIBRE INC
B23X1H3
$530,100
380
1.0
105560
KB FINANCIAL GROUP, INC.
B3DF0Y6
$527,933
10,365
1.0
PBR
PETROLEO BRASILEIRO-SPON
2616580
$520,452
30,687
1.0
SHFL
SHRIRAM TRANSPORT FINANCE CO., LTD.
6802608
$515,070
17,688
1.0
005380
HYUNDAI MOTOR CO.
6451055
$514,116
2,840
1.0
KMB
KOTAK MAHINDRA BANK, LTD.
6135661
$506,387
23,278
1.0
000660
SK HYNIX, INC.
6450267
$500,624
4,035
1.0
FIBRAPL
PROLOGIS PROPERTY MEXICO
BN56JP1
$493,117
116,565
0.9
TBBB
BBB FOODS INC-CLASS A
BMCGP59
$469,110
23,397
0.9
FERTIGL
FERTIGLOBE PLC
BMXCL70
$462,679
606,911
0.9
006400
SAMSUNG SDI CO., LTD.
6771645
$451,221
1,528
0.9
1801
INNOVENT BIOLOGICS, INC.
BGR6KX5
$405,965
88,000
0.8
NU
NU HOLDINGS LTD/CAYMAN IS
BN6NP19
$393,022
35,991
0.8
300760
SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO., LTD. A SHARES
BHQK864
$344,806
8,800
0.7
BHARTI
BHARTI AIRTEL, LTD.
6442327
$285,772
17,743
0.5
2318
PING AN INSURANCE GROUP CO. OF CHINA, LTD. H SHARES
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Country
Fund
Benchmark
Difference
China/Hong Kong
22.0
25.2
-3.2
India
12.0
17.7
-5.7
Taiwan
10.1
17.5
-7.4
South Korea
9.2
12.8
-3.6
Brazil
6.7
5.2
1.5
Vietnam
5.6
0.0
5.6
Mexico
5.5
2.7
2.8
United States
5.0
0.0
5.0
France
2.5
0.0
2.5
Indonesia
2.2
1.9
0.3
Kazakhstan
2.0
0.0
2.0
United Arab Emirates
1.9
1.2
0.7
Poland
1.6
1.0
0.6
Philippines
1.3
0.6
0.7
Saudi Arabia
1.2
4.2
-3.0
Peru
1.2
0.3
0.9
South Africa
0.0
2.8
-2.8
Thailand
0.0
1.5
-1.5
Malaysia
0.0
1.4
-1.4
Kuwait
0.0
0.8
-0.8
Qatar
0.0
0.8
-0.8
Turkey
0.0
0.7
-0.7
Chile
0.0
0.5
-0.5
Greece
0.0
0.5
-0.5
Hungary
0.0
0.2
-0.2
Colombia
0.0
0.1
-0.1
Czech Republic
0.0
0.1
-0.1
Egypt
0.0
0.1
-0.1
Cash and Other Assets, Less Liabilities
10.0
0.0
10.0
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
58.5
56.3
2.2
Large Cap ($10B-$25B)
13.1
22.0
-8.9
Mid Cap ($3B-$10B)
16.3
20.6
-4.3
Small Cap (under $3B)
2.0
1.0
1.0
Cash and Other Assets, Less Liabilities
10.0
0.0
10.0
Source: FactSet Research Systems.
Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.
Portfolio Characteristics
(as of 03/31/2024)
Fund
Benchmark
Number of Positions
57
1,376
Weighted Average Market Cap
$151.8 billion
$128.9 billion
Active Share
78.8
n.a.
P/E using FY1 estimates
14.2x
12.5x
P/E using FY2 estimates
12.0x
11.1x
Price/Cash Flow
10.5
7.7
Price/Book
2.5
1.7
Return On Equity
19.7
15.4
EPS Growth (3 Yr)
23.5%
17.9%
Sources: Factset Research Systems, Inc.
Distributions
Ex Date
Record Date
Pay Date
Reinvest Date
Ordinary Income
Short Term Capital Gains
Long Term Capital Gains
Total Distributions Per Share
% of NAV
12/14/2023
12/15/2023
12/21/2023
12/14/2023
$0.00305
$0.00000
$0.00000
$0.00305
0.0%
There is no guarantee that the Fund will pay or continue to pay distributions.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.
Alex Zarechnak is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets Equity and Emerging Markets ex China Strategies and co-manages the Emerging Markets Small Companies and Emerging Markets Discovery Strategies. Prior to joining the firm in 2020, he spent a total of 15 years (1998 – 2006 and 2012 – 2019) at Wellington Management as an analyst for the firm’s flagship Emerging Markets Equity fund as a generalist first covering CEEMEA, then Latin America. From 2006-2012, he was a regional equity analyst at Capital Group, covering Emerging Markets with a focus on energy, telecoms and consumer sectors in Latin America and CEEMEA. Alex began his Emerging Markets career as a Russia equity analyst with Templeton Emerging Markets, based in Moscow. He earned a B.A. in Economics and Government from the College of William & Mary. Alex is fluent in Russian.
Andrew Mattock is a Portfolio Manager at Matthews and manages the firm’s China, China Small Companies, China A-Share and China Discovery Strategies and co-manages the Pacific Tiger, China Dividend and Emerging Markets Equity Strategies. Prior to joining Matthews in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Andrew holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers and qualified as a Chartered Accountant.
Peeyush Mittal is a Portfolio Manager at Matthews and manages the firm’s India Strategy and co-manages the Emerging Markets Equity, Emerging Markets ex China, Asia Growth and Pacific Tiger Strategies. Prior to joining the Matthews in 2015, he spent over three years at Franklin Templeton Asset Management India, most recently as a Senior Research Analyst. Previously, he was with Deutsche Asset & Wealth Management New York, from 2009 to 2011, researching U.S. and European stocks in the industrials and materials sectors. Peeyush began his career in 2003 with Scot Forge as an Industrial Engineer, and was responsible for implementing Lean Manufacturing systems on the production shop floor. Peeyush earned his M.B.A from The University of Chicago Booth School of Business. He received a Master of Science in Industrial Engineering from The Ohio State University and received a Bachelor of Technology in Metallurgical Engineering from The Indian Institute of Technology Madras. He is fluent in Hindi.
Sean Taylor is Chief Investment Officer and Portfolio Manager at Matthews. As Chief Investment Officer, Sean oversees the firm’s investment process and investment professionals and sets the research agenda for the investment team. He manages the firm’s Pacific Tiger and Asia ex Japan Total Return Equity Strategies and co-manages the firm’s Emerging Markets Equity and Emerging Markets ex China Strategies. Prior to joining Matthews in October 2023, he was Chief Investment Officer APAC, Global Head of Emerging Markets Equity at DWS Group based in Hong Kong since he joined the company in 2013. From 2004 to 2011, he was an Investment Director at GAM, based in London and Dubai. From 1997 to 2004, he was at Societe Generale as Head of International and Emerging Markets. Sean has 30 years of experience, including more than a decade as CIO. He oversaw a number of emerging markets active strategies, including Latin America, India, China, Brazil, Russia as well as international and global strategies. He received his MBA from Manchester Business School and is a graduate of the Royal Military Academy, Sandhurst.
Jeremy Sutch is a Portfolio Manager at Matthews and co-manages the firm’s Emerging Markets Equity, Emerging Markets ex China Equity, Emerging Markets Small Companies, Emerging Markets Discovery, Asia Small Companies, Asia ex Japan Total Return Equity and Pacific Tiger Strategies. Prior to joining Matthews in 2015, he was Director and Global Head of Emerging Companies at Standard Chartered Bank in Hong Kong from 2012 to 2015, responsible for the fundamental analysis of companies in Asia, with a particular focus on small- and mid-capitalization companies. From 2009 to 2012, he was Managing Director at MJP Capital in Hong Kong, which he co-founded. His prior experience has included managing small-cap equities at Indus Capital Advisors and serving as Head of Hong Kong Research for ABN AMRO Asia Securities. Jeremy earned an M.A. in French and History from the University of Edinburgh.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan and Thailand. The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The Korea Composite Stock Price Index (KOSPI) is a market capitalization–weighted index of all common stocks listed on the Korea Stock Exchange.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
The MSCI Korea Index is a free float-adjusted market capitalization-weighted index of Korean equities listed in Korea.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.
The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.