Under normal circumstances, the Matthews China 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 China. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.
Risks
Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.
These and other risks associated with investing in the Fund can be found in the
prospectus.
China - China includes its administrative and other districts, such as Hong Kong
Fees & Expenses
Gross Expense Ratio
0.79%
Objective
Long-term capital appreciation
Strategy
Under normal circumstances, the Matthews China 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 China. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.
Risks
Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.
The risks associated with investing in the Fund can be found in the prospectus
NAV & Market Price
(as of 10/03/2024)
NAV
$26.41
NAV Change
-0.48
Market Price
$26.97
Market Price Change
-0.78
Day's Trading Volume
37,268 Shares
Median BID/ASK Spread (30 Day)
0.27% (as of 10/03/2024)
Premium Discount
+2.12%
Number of days at Premium/Discount
2024
2023
Q4
Q3
Q2
Q1
Premium
3
26
51
43
160
Discount
0
35
8
18
78
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
Calendar Year
As of 08/31/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews China Active ETF - MCH
07/13/2022
NAV
0.53%
-5.19%
-0.26%
-9.42%
n.a.
n.a.
n.a.
-11.34%
Market Price
0.00%
-7.23%
-0.89%
-11.16%
n.a.
n.a.
n.a.
-11.67%
MSCI China Index
1.01%
-2.06%
4.58%
-2.57%
n.a.
n.a.
n.a.
-6.84%
MSCI China All Shares Index
-0.01%
-3.00%
1.75%
-4.49%
n.a.
n.a.
n.a.
-9.05%
As of 06/30/2024
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews China Active ETF - MCH
07/13/2022
NAV
-4.44%
2.95%
0.52%
-6.03%
n.a.
n.a.
n.a.
-11.90%
Market Price
-5.51%
2.29%
0.95%
-6.48%
n.a.
n.a.
n.a.
-11.80%
MSCI China Index
-1.84%
7.16%
4.82%
-1.43%
n.a.
n.a.
n.a.
-7.30%
MSCI China All Shares Index
-2.41%
3.46%
2.37%
-4.19%
n.a.
n.a.
n.a.
-9.51%
For the years ended December 31st
Name
2023
Matthews China Active ETF - MCH
NAV
-19.35%
Market Price
-19.92%
MSCI China Index (USD)
-11.04%
MSCI China All Shares Index (USD)
-11.35%
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
700
TENCENT HOLDINGS, LTD.
BMMV2K8
$3,259,565
53,000
7.3
9988
ALIBABA GROUP HOLDING, LTD.
BK6YZP5
$3,157,818
215,300
7.0
3690
MEITUAN DIANPING CLASS B
BGJW376
$3,012,063
109,610
6.7
9618
JD.COM INC-CLASS A
BKPQZT6
$1,931,409
82,050
4.3
PDD
PDD HOLDINGS INC
BYVW0F7
$1,816,838
11,777
4.1
939
CHINA CONSTRUCTION BANK CORP. H SHARES
B0LMTQ3
$1,784,447
2,268,000
4.0
2318
PING AN INSURANCE GROUP CO. OF CHINA, LTD. H SHARES
B01FLR7
$1,575,331
213,500
3.5
DIDIY
DIDI GLOBAL INC
BMBR6F0
$1,253,209
251,144
2.8
BEKE
KE HOLDINGS INC-ADR
BMBX7M2
$1,245,959
48,293
2.8
000858
WULIANGYE YIBIN CO., LTD. A SHARES
BD5CPG2
$1,188,796
51,900
2.7
3908
CHINA INTERNATIONAL CAPITAL CORP., LTD. H SHARES
BZ169C6
$1,153,899
451,200
2.6
2628
CHINA LIFE INSURANCE CO., LTD. H SHARES
6718976
$1,096,937
466,000
2.4
857
PETROCHINA CO., LTD. H SHARES
6226576
$1,093,341
1,256,000
2.4
3968
CHINA MERCHANTS BANK CO., LTD. H SHARES
B1DYPZ5
$1,069,524
179,000
2.4
600036
CHINA MERCHANTS BANK CO., LTD. A SHARES
BP3R273
$830,147
156,600
1.9
300750
CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. A SHARES
BHQPSY7
$791,727
22,300
1.8
6030
CITIC SECURITIES CO., LTD. H SHARES
B6SPB49
$702,912
196,000
1.6
884
CIFI HOLDINGS GROUP CO., LTD.
B8Z00N3
$649,690
7,762,000
1.5
2618
JD LOGISTICS INC
BNMBPD9
$603,776
313,000
1.3
1999
MAN WAH HOLDINGS LTD
B58YWF7
$562,087
698,400
1.3
1024
KUAISHOU TECHNOLOGY
BLC90T0
$558,796
73,800
1.2
000333
MIDEA GROUP CO., LTD. A SHARES
BD5CPP1
$521,018
48,600
1.2
388
HONG KONG EXCHANGES & CLEARING, LTD.
6267359
$513,504
10,600
1.1
601318
PING AN INSURANCE GROUP CO. OF CHINA, LTD. A SHARES
BP3R284
$494,874
61,500
1.1
600309
WANHUA CHEMICAL GROUP CO., LTD. A SHARES
BP3R3S1
$490,400
38,100
1.1
27
GALAXY ENTERTAINMENT GROUP, LTD.
6465874
$484,438
95,000
1.1
603501
WILL SEMICONDUCTOR CO LTD
BK947V2
$465,377
30,800
1.0
1801
INNOVENT BIOLOGICS, INC.
BGR6KX5
$454,479
69,000
1.0
TCOM
CTRIP.COM INTERNATIONAL, LTD. ADR
BK1K3N2
$447,806
6,544
1.0
960
LONGFOR GROUP HOLDINGS LT
B56KLY9
$447,712
205,000
1.0
2020
ANTA SPORTS PRODUCTS, LTD.
B1YVKN8
$411,007
31,200
0.9
YUMC
YUM CHINA HOLDINGS, INC.
BYW4289
$398,239
7,900
0.9
300033
HITHINK ROYALFLUSH INFORM
BD5CN46
$397,802
14,600
0.9
168
TSINGTAO BREWERY CO., LTD. H SHARES
6905808
$386,507
46,000
0.9
600885
HONGFA TECHNOLOGY CO LTD-
BYQDM93
$376,664
82,100
0.8
688777
SUPCON TECHNOLOGY CO LTD-
BQ3RXP5
$349,379
49,270
0.8
9888
BAIDU INC-CLASS A
B0J2D41
$349,328
24,550
0.8
603345
ANJOY FOODS GROUP CO LTD-
BMXWM11
$331,843
23,700
0.7
300274
SUNGROW POWER SUPPLY CO L
BD5CGB4
$329,837
23,500
0.7
300760
SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO., LTD. A SHARES
BHQK864
$317,993
7,700
0.7
9999
NETEASE INC
BM93SF4
$313,251
15,100
0.7
600809
SHANXI XINGHUACUN FEN WIN
BP3R820
$311,607
10,100
0.7
300059
EAST MONEY INFORMATION CO
BD5CPC8
$309,130
108,040
0.7
002475
LUXSHARE PRECISION INDUSTRY CO., LTD. A SHARES
BD5CN80
$300,155
49,000
0.7
002311
GUANGDONG HAID GROUP CO., LTD. A SHARES
BD5CJ60
$280,886
41,500
0.6
601138
FOXCONN INDUSTRIAL INTERNET CO., LTD. A SHARES
BG20N99
$280,844
79,100
0.6
002371
NAURA TECHNOLOGY GROUP CO., LTD. A SHARES
BD5LYF1
$277,884
5,387
0.6
2669
CHINA OVERSEAS PROPERTY HOLDINGS, LTD.
BYYMZN7
$271,772
315,000
0.6
601888
CHINA INTERNATIONAL TRAVEL SERVICE CORP., LTD. A SHARES
BP3R466
$263,325
24,200
0.6
300394
SUZHOU TFC OPTICAL COMMUN
BL5P4J3
$244,493
17,260
0.5
1208
MMG, LTD.
6728793
$225,607
600,000
0.5
300856
NANJING COSMOS CHEMICAL C
BNHPGN3
$212,941
44,500
0.5
1233
TIMES CHINA HOLDINGS, LTD.
BH3FTS1
$207,260
2,596,000
0.5
316
ORIENT OVERSEAS INTL LTD
6659116
$196,241
14,500
0.4
603699
NEWAY VALVE SUZHOU CO LTD
BS7K3W1
$171,137
56,500
0.4
002027
FOCUS MEDIA INFORMATION TECHNOLOGY CO., LTD. A SHARES
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
71.5
68.8
2.7
Large Cap ($10B-$25B)
15.7
14.8
0.9
Mid Cap ($3B-$10B)
7.7
15.7
-8.0
Small Cap (under $3B)
4.0
0.7
3.3
Cash and Other Assets, Less Liabilities
1.0
0.0
1.0
China Exposure
Portfolio Weight
Hong Kong Listed Companies
61.9
Mainland China Listed Companies
26.6
ADR/GDR
9.9
Other
0.8
Cash and Other Assets, Less Liabilities
1.0
Mainland China listed companies includes A Share and B Shares. A Shares are Mainland Chinese companies incorporated in China and listed on the Shanghai or Shenzhen exchanges, available mostly to local Chinese investors and qualified institutional investors. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. ADRs are American Depositary Receipts and GDRs are Global Depositary Receipts. Hong Kong Listed Companies include SAR (Hong Kong) companies, China-affiliated corporations, and H Shares. SAR companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated corporations [CAC], also known as "Red Chips," are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. Other represents Chinese companies listed in other countries or non-China companies with a majority of revenue coming from China such as Japan, Singapore, Taiwan and the United States or other non-China companies.
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 06/30/2024)
Fund
Benchmark
Number of Positions
61
657
Weighted Average Market Cap
$124.6 billion
$141.4 billion
Active Share
55.3
n.a.
P/E using FY1 estimates
10.2x
9.6x
P/E using FY2 estimates
9.1x
8.7x
Price/Cash Flow
5.9
5.8
Price/Book
1.4
1.3
Return On Equity
14.4
13.5
EPS Growth (3 Yr)
10.9%
8.7%
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
$0.30767
$0.00000
$0.00000
$0.30767
1.7%
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.
Andrew Mattock is a Portfolio Manager at Matthews and manages the firm’s China, China Small Companies, China Discovery and China A-Share Strategies and co-manages the Pacific Tiger, China Total Return Equity 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.
Winnie Chwang is a Portfolio Manager at Matthews and manages the firm’s China Small Companies, China Discovery and China Total Return Equity Strategies and co-manages the China, China A-Share, Pacific Tiger and Asia Dividend Strategies. She joined the firm in 2004 and has built her investment career at the firm. Winnie earned an MBA from the Haas School of Business and received her B.A. in Economics with a minor in Business Administration from the University of California, Berkeley. She is fluent in Mandarin and conversational in Cantonese.
Sherwood Zhang is a Portfolio Manager at Matthews and manages the firm’s China Dividend, China Total Return Equity and China A-Shares Strategies and co-manages the China, China Discovery, China Small Companies and Asia ex Japan Total Return Equity Strategies. Prior to joining Matthews in 2011, Sherwood was an analyst at Passport Capital from 2007 to 2010, where he focused on such industries as property and basic materials in China as well as consumer-related sectors. Before earning his MBA in 2007, Sherwood served as a Senior Treasury Officer for Hang Seng Bank in Shanghai and Hong Kong, and worked as a Foreign Exchange Trader at Shanghai Pudong Development Bank in Shanghai. He received his MBA from the University of Maryland and his Bachelor of Economics in Finance from Shanghai University. Sherwood is fluent in Mandarin and speaks conversational Cantonese.
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.
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.