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Matthews China Discovery Active ETF
MCHS

Snapshot
  • Seeks alpha in China’s lesser known small entrepreneurial companies
  • Invests in industries that are leveraged to China’s increasingly innovative and dynamic economy driven by fast growing domestic consumer demand
  • Tilt towards higher value-added growth sectors benefiting from innovation and capital efficiency

01/10/2024

Inception Date

n.a.

NAV YTD Return

(as of 02/27/2024)

$25.41

NAV

(as of 02/27/2024)

+0.36

1 Day NAV Change

(as of 02/27/2024)

Objective

Long-term capital appreciation.

Strategy

Under normal circumstances, the Matthews China 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 China. China includes its administrative and other districts, such as Hong Kong. The Fund may also invest in companies located outside of China; however, the Fund may not invest in any company located outside of China if, at the time of purchase, more than 20% of the Fund’s assets are invested in companies located outside of China. The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified fund.

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 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.

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

Fund Facts
Inception Date 01/10/2024
Fund Assets $2.03 million (02/27/2024)
Currency USD
Ticker MCHS
Cusip 577-125-735
Primary Exchange NASDAQ
Benchmark MSCI China Small Cap Index
Geographic Focus China - China includes its administrative and other districts, such as Hong Kong
Fees & Expenses
Gross Expense Ratio 0.99%
Net Expense Ratio 0.89%

NAV & Market Price

(as of 02/27/2024)
NAV $25.41
NAV Change +0.36
Market Price $25.53
Market Price Change +0.47
Day's Trading Volume 2,800 Shares
Median BID/ASK Spread (30 Day) 0.41% (as of 02/27/2024)
Premium Discount +0.46%
Number of days at Premium/Discount
2024
Q1
Premium 30
Discount 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.

Performance

  • Monthly
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As of 01/31/2024
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews China Discovery Active ETF - MCHS
01/10/2024
NAV
n.a. n.a. n.a. n.a. n.a. n.a. n.a. -8.56%
Market Price
n.a. n.a. n.a. n.a. n.a. n.a. n.a. -8.04%
MSCI China Small Cap Index
n.a. n.a. n.a. n.a. n.a. n.a. n.a. -9.98%

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 02/28/2024)
Ticker Name SEDOL Market Value Shares % Net Assets
YZJSGD YANGZIJIANG SHIPBUILDING HOLDINGS, LTD. B1VT035 $105,211 84,600 5.2
2669 CHINA OVERSEAS PROPERTY HOLDINGS, LTD. BYYMZN7 $88,699 105,000 4.4
1910 SAMSONITE INTERNATIONAL S.A. B4Q1532 $84,169 24,900 4.1
2423 KE HOLDINGS INC-CL A BN7SX97 $79,870 16,800 3.9
YMM FULL TRUCK ALLIANCE -SPN BMD2L36 $76,285 11,437 3.8
LEGN LEGEND BIOTECH CORP-ADR BMX9K07 $76,009 1,086 3.7
603198 ANHUI YINGJIA DISTILLERY BYV1VH3 $72,158 8,200 3.6
600803 ENN NATURAL GAS CO LTD-A BYYFJJ0 $70,347 27,100 3.5
ACMR ACM RESEARCH INC-CLASS A BF5C2N2 $69,053 3,169 3.4
BZ KANZHUN LTD - ADR BM91SH0 $65,255 4,183 3.2
2383 ELITE MATERIAL CO., LTD. 6316121 $63,812 4,000 3.1
603816 JASON FURNITURE HANGZHOU BYW5R09 $63,759 12,100 3.1
780 TONGCHENG TRAVEL HOLDINGS BGM5R25 $63,123 25,200 3.1
3035 FARADAY TECHNOLOGY CORP. 6186045 $60,456 5,000 3.0
921 HISENSE HOME APPLIANCES G 6391935 $56,705 18,000 2.8
5871 CHAILEASE HOLDING CO., LTD. B58J1S8 $54,442 10,000 2.7
2155 MORIMATSU INTERNATIONAL H BNKLJ40 $51,140 82,000 2.5
600885 HONGFA TECHNOLOGY CO LTD- BYQDM93 $46,014 13,300 2.3
2367 GIANT BIOGENE HOLDING CO BNNJRV4 $45,880 10,000 2.3
9979 GREENTOWN MANAGEMENT HOLD BKWGV13 $43,241 67,000 2.1
002472 ZHEJIANG SHUANGHUAN DRIVE BP91M35 $41,753 12,300 2.1
002353 YANTAI JEREH OILFIELD-A BD5CMC7 $39,749 9,800 2.0
1789 AK MEDICAL HOLDINGS, LTD. BFD6SZ0 $38,767 58,000 1.9
2192 MEDLIVE TECHNOLOGY CO LTD BN7RMD1 $33,421 34,500 1.6
3533 LOTES CO LTD B1GJFG8 $31,811 1,000 1.6
MLCO MELCO RESORTS & ENTERTAINMENT, LTD. ADR B1KYHF2 $31,762 3,813 1.6
6533 ANDES TECHNOLOGY CORP BWT3K58 $30,735 2,000 1.5
9899 CLOUD MUSIC INC BP2TRS6 $28,305 2,450 1.4
1368 XTEP INTERNATIONAL HOLDIN B2RJYH8 $27,771 49,500 1.4
6531 AP MEMORY TECHNOLOGY CORP BWY5316 $27,728 2,000 1.4
ZH ZHIHU INC - ADR BN2D5M4 $27,626 33,909 1.4
603345 ANJOY FOODS GROUP CO LTD- BMXWM11 $27,572 2,300 1.4
1896 MAOYAN ENTERTAINMENT BHHD4Q4 $27,344 23,800 1.3
1801 INNOVENT BIOLOGICS, INC. BGR6KX5 $26,966 5,000 1.3
300487 SUNRESIN NEW MATERIALS CO BHQPSB4 $24,700 3,600 1.2
002139 SHENZHEN TOPBAND CO LTD - BD73L43 $23,897 19,900 1.2
1308 SITC INTERNATIONAL HOLDINGS CO., LTD. B61X7R5 $21,233 13,000 1.0
300012 CENTRE TESTING INTERNATIONAL GROUP CO., LTD. A SHARES B4VM756 $20,992 11,500 1.0
710 BOE VARITRONIX LTD BDFBQH7 $20,254 28,000 1.0
839 CHINA EDUCATION GROUP HOLDINGS, LTD. BF13433 $19,905 35,000 1.0
300682 LONGSHINE TECHNOLOGY GROU BKDQ8C2 $14,962 8,300 0.7
9996 PEIJIA MEDICAL LTD BMT7V13 $14,170 22,000 0.7
2268 WUXI XDC CAYMAN INC BQHNQ38 $14,109 6,000 0.7
002557 CHACHA FOOD CO LTD-A BD5LW57 $13,616 2,900 0.7
694 BEIJING CAPITAL INTERNATIONAL AIRPORT CO., LTD. H SHARES 6208422 $10,428 32,000 0.5
CASH CASH AND OTHERS $32,345 1.6
CURR CNY $24,866 1.2
TOTAL 38.7

Portfolio Managers

Andrew  Mattock, CFA photo
Andrew Mattock, CFA

Lead Manager

Winnie  Chwang photo
Winnie Chwang

Lead Manager

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.