Matthews Emerging Markets Discovery Active ETF
MEMS
ETF
Snapshot
Seeks alpha in innovative, capital efficient entrepreneurial companies in emerging markets
Focus on firms that have a strong competitive advantage through pricing power, distribution capability, and/or differentiated technologies and services
Bias toward businesses that cater to rising domestic consumer demand
Under normal circumstances, the Matthews Emerging Markets Discovery Active ETF seeks to achieve its investment objective by investing at least 65% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies (defined below). The remainder of the portfolio will be comprised of other investments that facilitate the investment strategy, and Matthews expects that the remainder of the portfolio will be comprised of mid-capitalization companies. In addition, at least 80% of the Fund’s net assets, which includes borrowings for investment purposes, will be invested in the common and preferred stocks of companies located in emerging market countries, such as China and India.
Risks
Investing in international and emerging markets may involve additional 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 securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies. The ETF is new with a limited history.
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
0.99%
Net Expense Ratio
0.89%
Objective
Long-term capital appreciation.
Strategy
Under normal circumstances, the Matthews Emerging Markets Discovery Active ETF seeks to achieve its investment objective by investing at least 65% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of Small Companies (defined below). The remainder of the portfolio will be comprised of other investments that facilitate the investment strategy, and Matthews expects that the remainder of the portfolio will be comprised of mid-capitalization companies. In addition, at least 80% of the Fund’s net assets, which includes borrowings for investment purposes, will be invested in the common and preferred stocks of companies located in emerging market countries, such as China and India.
Risks
Investing in international and emerging markets may involve additional 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 securities involves greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. The Fund is non-diversified as it concentrates its investments in small sized companies. Investing in small- and mid-size companies is more risky and volatile than investing in large companies as they may be more volatile and less liquid than larger companies. The ETF is new with a limited history.
The risks associated with investing in the Fund can be found in the prospectus
NAV & Market Price
(as of 10/04/2024)
NAV
$26.62
NAV Change
+0.36
Market Price
$26.97
Market Price Change
+0.56
Day's Trading Volume
403 Shares
Median BID/ASK Spread (30 Day)
0.24% (as of 10/04/2024)
Premium Discount
+1.31%
Number of days at Premium/Discount
2024
Q4
Q3
Q2
Q1
Premium
4
54
52
52
Discount
0
9
7
2
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.
ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Performance
Monthly
Quarterly
As of 08/31/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Discovery Active ETF - MEMS
01/10/2024
NAV
1.90%
3.00%
n.a.
n.a.
n.a.
n.a.
n.a.
3.00%
Market Price
1.65%
2.70%
n.a.
n.a.
n.a.
n.a.
n.a.
3.56%
MSCI Emerging Markets Small Cap Index
1.83%
5.18%
n.a.
n.a.
n.a.
n.a.
n.a.
10.75%
As of 06/30/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews Emerging Markets Discovery Active ETF - MEMS
01/10/2024
NAV
1.76%
1.27%
n.a.
n.a.
n.a.
n.a.
n.a.
1.76%
Market Price
0.95%
0.75%
n.a.
n.a.
n.a.
n.a.
n.a.
1.80%
MSCI Emerging Markets Small Cap Index
3.26%
6.07%
n.a.
n.a.
n.a.
n.a.
n.a.
8.73%
The Fund’s primary benchmark index is the MSCI Emerging Markets Index.
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 10/07/2024)
Ticker
Name
SEDOL
Market Value
Shares
% Net Assets
SHFL
SHRIRAM TRANSPORT FINANCE CO., LTD.
6802608
$931,901
23,455
7.3
BANDHAN
BANDHAN BANK, LTD.
BG1SV45
$629,678
282,965
4.9
YMM
FULL TRUCK ALLIANCE -SPN
BMD2L36
$619,864
61,801
4.9
145020
HUGEL, INC.
BZ1G175
$541,433
2,844
4.2
LEGN
LEGEND BIOTECH CORP-ADR
BMX9K07
$443,642
9,041
3.5
PHNX
PHOENIX MILLS LTD
B0SXY97
$425,826
21,382
3.3
6643
M31 TECHNOLOGY CORP
BF0N865
$354,505
13,600
2.8
SBFG3
GRUPO SBF SA
BNDRCL3
$347,808
126,500
2.7
6415
SILERGY CORP.
BH4DMW9
$301,078
19,000
2.4
TADAWUL
SAUDI TADAWUL GROUP HOLDI
BMZQ749
$299,614
4,876
2.3
ZH
ZHIHU INC - ADR
BQSB1R0
$296,669
61,806
2.3
6865
FLAT GLASS GROUP CO LTD-H
BYQ9774
$288,716
162,000
2.3
INPST
INPOST SA
BN4N9C0
$274,502
14,532
2.1
FNXC
FINOLEX CABLES, LTD.
B1LDTB8
$258,183
15,881
2.0
GTCAP
GT CAPITAL HOLDINGS, INC.
B77H110
$250,182
19,500
2.0
1590
AIRTAC INTERNATIONAL GROUP
B52J816
$249,789
8,000
2.0
2192
MEDLIVE TECHNOLOGY CO LTD
BN7RMD1
$249,477
198,500
2.0
780
TONGCHENG TRAVEL HOLDINGS
BGM5R25
$240,038
91,600
1.9
2383
ELITE MATERIAL CO., LTD.
6316121
$233,193
18,000
1.8
RDCK
RADICO KHAITAN LTD
B0VY3T0
$231,127
9,558
1.8
VAMO3
VAMOS LOCACAO DE CAMINHOE
BJLSQZ2
$224,645
217,300
1.8
6669
WIWYNN CORP
BF4QXG5
$216,284
4,000
1.7
084370
EUGENE TECHNOLOGY CO., LTD.
B0TBHH9
$210,765
7,547
1.6
BPAN4
BANCO PAN SA
BPY3V40
$210,206
117,500
1.6
UNOMIND
MINDA INDUSTRIES, LTD.
BYVC6Y8
$210,089
16,945
1.6
1368
XTEP INTERNATIONAL HOLDIN
B2RJYH8
$203,590
245,500
1.6
5904
POYA INTERNATIONAL CO., LTD.
6541826
$200,573
12,040
1.6
YDUQ3
YDUQS PARTICIPACOES SA
BJGV3C2
$196,667
105,500
1.5
694
BEIJING CAPITAL INTERNATIONAL AIRPORT CO., LTD. H SHARES
6208422
$194,625
458,000
1.5
VIVA3
VIVARA PARTICIPACOES SA
BKTPCJ8
$185,831
36,600
1.5
PARAUCO
PARQUE ARAUCO S.A.
2684349
$170,392
103,477
1.3
WBC
WE BUY CARS PTY LTD
BSB8C80
$155,541
89,622
1.2
1995
EVER SUNSHINE LIFESTYLE SERVICES GROUP, LTD.
BNT8LB3
$153,547
440,000
1.2
CARTRAD
CARTRADE TECH LTD
BNK8Z10
$148,206
13,703
1.2
300763
GINLONG TECHNOLOGIES CO L
BMQBTQ9
$146,586
12,500
1.1
6533
ANDES TECHNOLOGY CORP
BWT3K58
$134,083
11,000
1.0
BARBEQU
BARBEQUE NATION HOSPITALI
BFM70L4
$132,517
17,353
1.0
300012
CENTRE TESTING INTERNATIONAL GROUP CO., LTD. A 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
26.6
8.3
18.3
India
26.3
28.7
-2.4
Taiwan
14.3
22.7
-8.4
Brazil
8.4
3.6
4.8
South Korea
8.2
12.3
-4.1
Chile
4.0
0.7
3.3
Saudi Arabia
3.4
3.9
-0.5
Poland
2.1
1.4
0.7
Philippines
1.9
0.7
1.2
South Africa
1.2
3.1
-1.9
Vietnam
1.0
0.0
1.0
Indonesia
0.9
1.6
-0.7
Thailand
0.8
2.7
-1.9
Mexico
0.7
1.6
-0.9
Bangladesh
0.4
0.0
0.4
Turkey
0.3
2.4
-2.1
Malaysia
0.0
2.6
-2.6
Kuwait
0.0
1.1
-1.1
United Arab Emirates
0.0
1.0
-1.0
Qatar
0.0
0.7
-0.7
Greece
0.0
0.6
-0.6
Egypt
0.0
0.2
-0.2
Hungary
0.0
0.1
-0.1
Peru
0.0
0.1
-0.1
Liabilities in Excess of Cash and Other Assets
-0.4
0.0
-0.4
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
0.0
0.0
0.0
Large Cap ($10B-$25B)
11.1
0.1
11.0
Mid Cap ($3B-$10B)
39.5
20.6
18.9
Small Cap (under $3B)
49.8
79.2
-29.4
Liabilities in Excess of Cash and Other Assets
-0.4
0.0
-0.4
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.
Vivek Tanneeru is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets Sustainable Future, Emerging Markets Small Companies, Emerging Markets Discovery, Asia Discovery and Asia Sustainable Future Strategies. Prior to joining Matthews in 2011, Vivek was an Investment Manager on the Global Emerging Markets team of Pictet Asset Management in London. While at Pictet, he also worked on the firm’s Global Equities team, managing Japan and Asia ex-Japan markets. Before earning his MBA from the London Business School in 2006, Vivek was a Business Systems Officer at The World Bank and served as a Consultant at Arthur Andersen Business Consulting and Citicorp Infotech Industries. He interned at Generation Investment Management while studying for his MBA Vivek received his Master’s in Finance from the Birla Institute of Technology & Science in India. He is fluent in Hindi and Telugu.
Jeremy Sutch is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets ex China Strategy and co-manages the firm’s Emerging Markets Equity, Emerging Markets Small Companies, Emerging Markets Discovery, Asia Discovery, 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.
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, Emerging Markets Discovery, and Emerging Markets Sustainable Future 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.
Hardy Zhu is a Portfolio Manager at Matthews and co manages the firm’s Asia Discovery, China, China Small Companies, China Dividend, China Total Return Equity, China Discovery, China A-Share, Emerging Markets Small Companies and Emerging Markets Discovery Strategies. Prior to joining the firm in 2011, Hardy was an Equity Analyst with Delaware Investments researching Chinese equities. Before earning his MBA from Duke University in 2007, Hardy was a senior accountant at PNC Global Investment Servicing from 2000 to 2005. Hardy began his career at China National Nonferrous Metals Import & Export Co., one of the largest state-owned international trading companies in China. He received a Master of Accounting degree from the Virginia Polytechnic Institute and State University and a B.S. in Industrial Foreign Trade from Shenyang Polytechnic University in China. Hardy is fluent in Mandarin.
Visit our Glossary of Terms page for definitions and additional information.
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.
The MSCI Korea 25/50 Index is designed to measure the performance of the large and mid cap segments of the Korean market. It applies certain investment limits that are imposed on regulated investment companies, or RICs, under the current US Internal Revenue Code.
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.
The views and opinions in the commentary were as of the report date, subject to change and may not reflect current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund's future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.