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 12/07/2023)
NAV
$26.87
NAV Change
-0.05
Market Price
$26.87
Market Price Change
+0.07
Day's Trading Volume
90,545 Shares
Median BID/ASK Spread (30 Day)
0.37% (as of 12/07/2023)
Premium Discount
0.00%
Number of days at
Q3 2023
2022
Premium
46
92
Discount
12
26
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
As of 11/30/2023
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
8.12%
-1.35%
2.85%
0.00%
n.a.
n.a.
n.a.
6.18%
Market Price
8.07%
-2.18%
1.78%
-2.31%
n.a.
n.a.
n.a.
5.86%
MSCI Emerging Markets Index
8.02%
1.16%
6.08%
4.65%
n.a.
n.a.
n.a.
4.30%
As of 09/30/2023
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
-3.87%
-4.67%
0.23%
10.70%
n.a.
n.a.
n.a.
4.80%
Market Price
-4.44%
-5.67%
-0.57%
10.85%
n.a.
n.a.
n.a.
4.67%
MSCI Emerging Markets Index
-2.58%
-2.79%
2.16%
12.17%
n.a.
n.a.
n.a.
1.71%
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 12/11/2023)
Ticker
Name
SEDOL
Market Value
Shares
% Net Assets
005935
SAMSUNG ELECTRONICS CO., LTD., PFD.
6773812
$3,042,082
68,077
5.8
2330
TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.
6889106
$2,781,153
153,000
5.3
FIBRAPL
PROLOGIS PROPERTY MEXICO
BN56JP1
$2,258,594
494,800
4.3
700
TENCENT HOLDINGS, LTD.
BMMV2K8
$2,246,081
57,400
4.3
FPT
FPT CORP.
B1HMWH6
$1,882,076
484,105
3.6
HDB
HDFC BANK, LTD. ADR
2781648
$1,834,098
28,418
3.5
IBN
ICICI BANK, LTD. ADR
2569286
$1,356,702
56,248
2.6
INFY
INFOSYS, LTD. ADR
2398822
$1,296,488
72,470
2.5
BPAC11
BANCO BTG PACTUAL SA-UNIT
BZBZVC7
$1,288,268
184,400
2.5
TTE
TOTALENERGIES SE -SPON AD
2898032
$1,278,610
19,207
2.4
WDS
WOODSIDE ENERGY GROUP LTD
BMGT167
$1,204,333
61,338
2.3
GLOB
GLOBANT SA
BP40HF4
$1,164,986
5,126
2.2
PRU
PRUDENTIAL PLC
0709954
$1,101,330
98,693
2.1
BBRI
PT BANK RAKYAT INDONESIA PERSERO
6709099
$1,092,397
3,152,200
2.1
DNP
DINO POLSKA SA
BD0YVN2
$1,047,172
9,270
2.0
AMAT
APPLIED MATERIALS, INC.
2046552
$1,023,700
6,930
2.0
1299
AIA GROUP, LTD.
B4TX8S1
$992,521
121,400
1.9
HTHT
HUAZHU GROUP, LTD. ADR
BFMFKK7
$947,564
27,410
1.8
GCC*
GCC SAB DE CV
2946663
$905,300
87,200
1.7
UTCEM
ULTRATECH CEMENT, LTD.
B01GZF6
$885,078
7,840
1.7
GFNORTE
GRUPO FINANCIERO BANORTE-
2421041
$858,609
89,700
1.6
IH
INDIAN HOTELS CO LTD
B1FRT61
$852,271
163,184
1.6
ARML3
ARMAC LOCACAO LOGISTICA E
BN94NV5
$843,139
241,300
1.6
9618
JD.COM INC-CLASS A
BKPQZT6
$833,993
62,150
1.6
KSPI
JSC KASPI.KZ GDR-REG S
BMXZ8G7
$828,160
8,829
1.6
VINP
VINCI PARTNERS INVESTMENT
BN4N953
$826,129
78,754
1.6
000333
MIDEA GROUP CO., LTD. A SHARES
BDVHRJ8
$797,206
113,400
1.5
DABUR
DABUR INDIA, LTD.
6297356
$788,049
120,021
1.5
VALE
VALE SA-SP ADR
2857334
$776,557
52,899
1.5
AC
AYALA CORPORATION
B09JBT3
$756,583
65,380
1.4
PI
PI INDUSTRIES LTD
B992PT3
$756,439
16,411
1.4
051910
LG CHEM, LTD.
6346913
$738,491
2,017
1.4
RBA
RESTAURANT BRANDS ASIA LT
BLGZ221
$736,716
525,951
1.4
CFR
CIE FINANCIERE RICHEMONT SA
BCRWZ18
$726,225
5,519
1.4
002594
BYD CO LTD -A
BD5CQ69
$713,487
25,800
1.4
YUMC
YUM CHINA HOLDINGS, INC.
BYW4289
$702,256
17,596
1.3
MBB
MILITARY COMMERCIAL JOINT STOCK BANK
B6SDL09
$700,888
933,105
1.3
TSM
TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD. ADR
2113382
$691,311
6,889
1.3
CUERVO*
BECLE SAB DE CV
BYM4063
$688,159
378,400
1.3
MC
LVMH MOET HENNESSY LOUIS VUITTON SE
4061412
$662,985
833
1.3
WLCON
WILCON DEPOT, INC.
BYXYHM7
$621,463
1,676,600
1.2
PRIO3
PRIO SA
BYY0144
$581,365
64,200
1.1
FCX
FREEPORT-MCMORAN INC
2352118
$580,643
15,220
1.1
WEGE3
WEG SA
2945422
$578,245
82,100
1.1
KMB
KOTAK MAHINDRA BANK, LTD.
6135661
$547,092
24,814
1.0
EMAAR
EMAAR PROPERTIES PJSC
B01RM25
$538,454
267,932
1.0
FERTIGL
FERTIGLOBE PLC
BMXCL70
$528,498
646,925
1.0
HAPV3
HAPVIDA PARTICIPACOES E I
BF4J7N9
$491,886
556,300
0.9
HDB
HDBANK
BYX3359
$456,421
589,818
0.9
1801
INNOVENT BIOLOGICS, INC.
BGR6KX5
$414,815
81,500
0.8
BUPA
BUPA ARABIA FOR COOPERATI
B2RLCR0
$396,023
7,053
0.8
NU
NU HOLDINGS LTD/CAYMAN IS
BN6NP19
$315,377
38,367
0.6
300760
SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS 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
India
16.4
15.7
0.7
China/Hong Kong
15.6
30.1
-14.5
Mexico
9.4
2.5
6.9
Brazil
9.0
5.4
3.6
South Korea
6.7
12.2
-5.5
Vietnam
6.6
0.0
6.6
Taiwan
6.2
14.6
-8.4
United States
4.9
0.0
4.9
France
3.8
0.0
3.8
Australia
2.8
0.0
2.8
Philippines
2.7
0.6
2.1
Indonesia
2.1
2.0
0.1
United Kingdom
2.1
0.0
2.1
Kazakhstan
1.7
0.0
1.7
Poland
1.5
0.8
0.7
Switzerland
1.3
0.0
1.3
Zambia
1.3
0.0
1.3
United Arab Emirates
1.2
1.4
-0.2
Singapore
1.2
0.0
1.2
Thailand
1.0
1.9
-0.9
Saudi Arabia
0.0
4.1
-4.1
South Africa
0.0
3.0
-3.0
Malaysia
0.0
1.4
-1.4
Qatar
0.0
0.9
-0.9
Kuwait
0.0
0.8
-0.8
Turkey
0.0
0.8
-0.8
Chile
0.0
0.5
-0.5
Greece
0.0
0.4
-0.4
Peru
0.0
0.3
-0.3
Czech Republic
0.0
0.2
-0.2
Hungary
0.0
0.2
-0.2
Colombia
0.0
0.1
-0.1
Egypt
0.0
0.1
-0.1
Cash and Other Assets, Less Liabilities
2.5
0.0
2.5
Not all countries are included in the benchmark index(es).
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
53.9
53.2
0.7
Large Cap ($10B-$25B)
12.4
21.6
-9.2
Mid Cap ($3B-$10B)
24.7
23.2
1.5
Small Cap (under $3B)
6.5
2.1
4.4
Cash and Other Assets, Less Liabilities
2.5
0.0
2.5
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 09/30/2023)
Fund
Benchmark
Number of Positions
53
1,437
Weighted Average Market Cap
$99.6 billion
$102.0 billion
Active Share
87.2
n.a.
P/E using FY1 estimates
15.6x
12.3x
P/E using FY2 estimates
13.0x
10.8x
Price/Cash Flow
9.7
6.2
Price/Book
2.4
1.6
Return On Equity
19.6
17.6
EPS Growth (3 Yr)
25.7%
22.8%
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
12/14/2022
12/15/2022
12/21/2022
12/14/2022
$0.14045
$0.00000
$0.00000
$0.14045
0.5%
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.
John Paul Lech is a Portfolio Manager at Matthews and manages the firm’s Emerging Markets Equity and Emerging Markets ex China Strategies. Prior to joining Matthews in 2018, he spent most of his 10 years at OppenheimerFunds (subsequently acquired by Invesco) as an Analyst and Portfolio Manager on a diversified emerging market equity strategy. John Paul started his career as an Analyst and Associate at Citigroup Global Markets, Inc. John Paul earned both an M.A. and a B.S.F.S from the Walsh School of Foreign Service at Georgetown University. He is fluent in Spanish and conversational in French and Portuguese.
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 and China A-Share 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 and Asia Growth 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.
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.