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Matthews Emerging Markets Equity Active ETF
MEM

Snapshot
  • Seeks Alpha in Global Emerging Markets—capitalizes on consumption and innovation trends
  • Quality Growth Portfolio—based on deep, holistic analysis
  • All-Cap, Company-First Approach—emphasizes fundamental research over top-down country or sector allocation

07/13/2022

Inception Date

n.a.

NAV YTD Return

(as of 12/05/2022)

$27.34

NAV

(as of 12/05/2022)

+0.07

1 Day NAV Change

(as of 12/05/2022)

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.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 07/13/2022
Fund Assets $3.37 million (10/31/2022)
Currency USD
Ticker MEM
Cusip 577-125-818
Primary Exchange NYSE Arca
Benchmark MSCI Emerging Markets Index
Geographic Focus 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%

NAV & Market Price

(as of 12/05/2022)
NAV $27.34
NAV Change +0.07
Market Price $27.31
Market Price Change -0.28
Day's Trading Volume 4,918 Shares
Median BID/ASK Spread (30 Day) 0.49% (as of 12/05/2022)
Premium Discount -0.13%
Number of days at Q3 2022 2021
Premium 39 0
Discount 17 0

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
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As of 10/31/2022
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
0.80% -7.98% n.a. n.a. n.a. n.a. n.a. -3.60%
Market Price
1.72% -7.94% n.a. n.a. n.a. n.a. n.a. -3.00%
MSCI Emerging Markets Index
-3.09% -14.02% n.a. n.a. n.a. n.a. n.a. -11.80%
As of 09/30/2022
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
-9.09% n.a. n.a. n.a. n.a. n.a. n.a. -4.36%
Market Price
-9.11% n.a. n.a. n.a. n.a. n.a. n.a. -4.64%
MSCI Emerging Markets Index
-11.67% n.a. n.a. n.a. n.a. n.a. n.a. -8.98%

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 12/06/2022)
Ticker Name SEDOL Market Value Shares % Net Assets
2330 TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. 6889106 $337,264 21,000 6.3
005935 SAMSUNG ELECTRONICS CO., LTD., PFD. 6773812 $301,163 7,130 5.6
700 TENCENT HOLDINGS, LTD. BMMV2K8 $238,491 5,900 4.4
FM FIRST QUANTUM MINERALS LT 2347608 $194,637 8,000 3.6
HDB HDFC BANK, LTD. ADR 2781648 $182,601 2,670 3.4
FPT FPT CORP. B1HMWH6 $151,538 46,400 2.8
WDS WOODSIDE ENERGY GROUP LTD BMGT167 $149,219 6,072 2.8
FIBRAPL PROLOGIS PROPERTY MEXICO BN56JP1 $147,470 50,400 2.7
PRU PRUDENTIAL PLC 0709954 $146,386 11,037 2.7
1299 AIA GROUP, LTD. B4TX8S1 $143,867 13,400 2.7
INFY INFOSYS, LTD. ADR 2398822 $141,627 7,171 2.6
IBN ICICI BANK, LTD. ADR 2569286 $140,589 6,150 2.6
BBRI PT BANK RAKYAT INDONESIA PERSERO 6709099 $102,748 325,000 1.9
CLI CAPITALAND INVESTMENT LTD BNHXFJ6 $101,142 36,800 1.9
BPAC11 BANCO BTG PACTUAL SA-UNIT BZBZVC7 $97,591 21,000 1.8
9618 JD.COM INC - CL A BKPQZT6 $96,416 3,100 1.8
HTHT HUAZHU GROUP, LTD. ADR BFMFKK7 $95,793 2,277 1.8
KMB KOTAK MAHINDRA BANK, LTD. 6135661 $92,897 3,920 1.7
GFNORTE GRUPO FINANCIERO BANORTE- 2421041 $91,321 12,000 1.7
051910 LG CHEM, LTD. 6346913 $90,456 168 1.7
VINP VINCI PARTNERS INVESTMENT BN4N953 $87,043 8,891 1.6
YUMC YUM CHINA HOLDINGS, INC. BYW4289 $87,032 1,569 1.6
VALE VALE SA-SP ADR 2857334 $84,325 5,123 1.6
AMAT APPLIED MATERIALS, INC. 2046552 $82,909 779 1.5
TDCX TDCX INC BP2G163 $82,582 6,333 1.5
GLOB GLOBANT SA BP40HF4 $79,888 446 1.5
WLCON WILCON DEPOT, INC. BYXYHM7 $79,565 142,000 1.5
ASR GRUPO AEROPORTUARIO SUR-A 2639361 $79,286 329 1.5
DABUR DABUR INDIA, LTD. 6297356 $78,069 10,877 1.5
EE EXCELERATE ENERGY INC-A BN2QTD2 $77,700 2,799 1.4
QNBK QATAR NATIONAL BANK 6148197 $76,940 14,369 1.4
DNP DINO POLSKA SA BD0YVN2 $74,260 949 1.4
RBA RESTAURANT BRANDS ASIA LT BLGZ221 $74,174 51,157 1.4
CUERVO* BECLE SAB DE CV BYM4063 $71,232 31,900 1.3
GCC* GCC SAB DE CV 2946663 $69,140 10,000 1.3
MC LVMH MOET HENNESSY LOUIS VUITTON SE 4061412 $67,697 90 1.3
PI PI INDUSTRIES LTD B992PT3 $66,101 1,553 1.2
600406 NARI TECHNOLOGY CO LTD-A BP3R444 $64,468 17,000 1.2
669 TECHTRONIC INDUSTRIES CO., LTD. B0190C7 $64,367 5,000 1.2
TTE TOTALENERGIES SE -SPON AD 2898032 $63,894 1,069 1.2
1821 ESR GROUP LTD BHNCRK0 $61,134 28,200 1.1
KSPI JSC KASPI.KZ GDR-REG S BMXZ8G7 $59,940 810 1.1
PBR PETROLEO BRASILEIRO-SPON 2616580 $59,378 5,359 1.1
AC AYALA CORPORATION B09JBT3 $56,454 4,680 1.0
388 HONG KONG EXCHANGES & CLEARING, LTD. 6267359 $55,126 1,300 1.0
HAPV3 HAPVIDA PARTICIPACOES E I BF4J7N9 $54,390 57,300 1.0
FERTIGL FERTIGLOBE PLC BMXCL70 $54,214 43,573 1.0
000333 MIDEA GROUP CO., LTD. A SHARES BDVHRJ8 $53,573 7,500 1.0
SCS SAIGON CARGO SERVICE CORP. BF51JC7 $52,843 16,670 1.0
1093 CSPC PHARMACEUTICAL GROUP, LTD. 6191997 $51,256 42,000 1.0
AVIA AVIA AVIAN TBK PT BPG9298 $48,982 1,045,000 0.9
HYPE3 HYPERA SA B2QY968 $47,718 5,800 0.9
MBB MILITARY COMMERCIAL JOINT STOCK BANK B6SDL09 $41,764 52,700 0.8
WEGE3 WEG SA 2945422 $38,623 5,400 0.7
BIMAS BIM BIRLESIK MAGAZALAR AS B0D0006 $34,353 5,309 0.6
HDB HDBANK BYX3359 $19,177 27,125 0.4
CASH CASH AND OTHERS $40,035 0.7
TOTAL 37.0

Portfolio Breakdown (%)

(as of 09/30/2022)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Financials 25.1 22.6 2.5
Information Technology 22.5 18.3 4.2
Materials 10.2 8.7 1.5
Consumer Discretionary 9.8 14.0 -4.2
Real Estate 7.7 2.0 5.7
Energy 6.8 5.3 1.5
Industrials 6.0 5.8 0.2
Consumer Staples 4.6 6.6 -2.0
Communication Services 3.5 9.7 -6.2
Health Care 2.4 3.9 -1.5
Utilities 0.0 3.2 -3.2
Cash and Other Assets, Less Liabilities 1.5 0.0 1.5

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 15.0 31.9 -16.9
India 15.0 15.3 -0.3
Mexico 9.8 2.2 7.6
Brazil 9.4 5.8 3.6
Vietnam 7.2 0.0 7.2
South Korea 6.5 10.7 -4.2
Taiwan 5.2 13.7 -8.5
Singapore 5.0 0.0 5.0
Canada 3.4 0.0 3.4
Indonesia 3.1 2.2 0.9
Australia 2.7 0.0 2.7
Philippines 2.6 0.7 1.9
United States 2.6 0.0 2.6
United Kingdom 2.2 0.0 2.2
France 2.0 0.0 2.0
Qatar 1.7 1.3 0.4
Poland 1.2 0.5 0.7
Argentina 1.2 0.0 1.2
Israel 1.2 0.0 1.2
Turkey 0.8 0.4 0.4
Kazakhstan 0.7 0.0 0.7
Saudi Arabia 0.0 4.8 -4.8
South Africa 0.0 3.0 -3.0
Thailand 0.0 2.1 -2.1
Malaysia 0.0 1.5 -1.5
United Arab Emirates 0.0 1.4 -1.4
Kuwait 0.0 0.9 -0.9
Chile 0.0 0.6 -0.6
Greece 0.0 0.3 -0.3
Hungary 0.0 0.2 -0.2
Peru 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 1.5 0.0 1.5

Not all countries are included in the benchmark index(es).

Equity market cap of issuer Fund Benchmark Difference
Mega Cap (over $25B) 44.6 52.3 -7.7
Large Cap ($10B-$25B) 20.9 21.4 -0.5
Mid Cap ($3B-$10B) 18.5 22.3 -3.8
Small Cap (under $3B) 14.5 4.0 10.5
Cash and Other Assets, Less Liabilities 1.5 0.0 1.5

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 09/30/2022)
Fund Benchmark
Number of Positions 55 1,387
Weighted Average Market Cap $69.1 billion $86.5 billion
Active Share 87.2 n.a.
P/E using FY1 estimates 12.0x 9.9x
P/E using FY2 estimates 11.5x 9.7x
Price/Cash Flow 9.4 6.0
Price/Book 2.1 1.5
Return On Equity 19.2 16.9
EPS Growth (3 Yr) 9.0% 13.1%

Sources: Factset Research Systems, Inc.

Portfolio Managers

John Paul Lech photo
John Paul Lech

Lead Manager

Alex  Zarechnak photo
Alex Zarechnak

Co-Manager

 

Visit our Glossary of Terms page for definitions and additional information.

Index Definitions

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.