TOP

Matthews Emerging Markets Discovery Active ETF
MEMS

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

01/10/2024

Inception Date

n.a.

NAV YTD Return

(as of 07/16/2024)

$26.26

NAV

(as of 07/16/2024)

+0.15

1 Day NAV Change

(as of 07/16/2024)

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.

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 $10.49 million (07/17/2024)
Currency USD
Ticker MEMS
Cusip 577-125-743
Primary Exchange NASDAQ
Benchmark MSCI Emerging Markets Small Cap 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 0.99%
Net Expense Ratio 0.89%

NAV & Market Price

(as of 07/16/2024)
NAV $26.26
NAV Change +0.15
Market Price $26.42
Market Price Change +0.29
Day's Trading Volume 13,223 Shares
Median BID/ASK Spread (30 Day) 0.23% (as of 07/16/2024)
Premium Discount +0.61%
Number of days at Premium/Discount
2024
Q3 Q2 Q1
Premium 11 52 52
Discount 0 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
  • data_graph_selected Created with Sketch.
  • bar_graph_selected Created with Sketch.
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%
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 07/18/2024)
Ticker Name SEDOL Market Value Shares % Net Assets
SHFL SHRIRAM TRANSPORT FINANCE CO., LTD. 6802608 $658,667 19,546 6.3
BANDHAN BANDHAN BANK, LTD. BG1SV45 $559,771 235,804 5.3
6643 M31 TECHNOLOGY CORP BF0N865 $520,578 11,600 5.0
PHNX PHOENIX MILLS LTD B0SXY97 $434,484 8,909 4.1
LEGN LEGEND BIOTECH CORP-ADR BMX9K07 $414,370 7,534 3.9
YMM FULL TRUCK ALLIANCE -SPN BMD2L36 $407,888 51,501 3.9
145020 HUGEL, INC. BZ1G175 $375,782 2,370 3.6
6669 WIWYNN CORP BF4QXG5 $364,533 5,000 3.5
VAMO3 VAMOS LOCACAO DE CAMINHOE BJLSQZ2 $296,399 174,500 2.8
SBFG3 GRUPO SBF SA BNDRCL3 $281,275 105,400 2.7
FNXC FINOLEX CABLES, LTD. B1LDTB8 $262,254 13,234 2.5
TADAWUL SAUDI TADAWUL GROUP HOLDI BMZQ749 $261,276 4,063 2.5
6415 SILERGY CORP. BH4DMW9 $239,183 16,000 2.3
084370 EUGENE TECHNOLOGY CO., LTD. B0TBHH9 $213,549 6,289 2.0
2383 ELITE MATERIAL CO., LTD. 6316121 $212,287 15,000 2.0
INPST INPOST SA BN4N9C0 $212,206 12,110 2.0
YDUQ3 YDUQS PARTICIPACOES SA BJGV3C2 $183,615 84,300 1.8
1590 AIRTAC INTERNATIONAL GROUP B52J816 $178,652 6,000 1.7
UNOMIND MINDA INDUSTRIES, LTD. BYVC6Y8 $172,507 14,121 1.6
GTCAP GT CAPITAL HOLDINGS, INC. B77H110 $166,402 16,250 1.6
ZH ZHIHU INC - ADR BQSB1R0 $165,331 51,505 1.6
2192 MEDLIVE TECHNOLOGY CO LTD BN7RMD1 $165,318 165,500 1.6
RDCK RADICO KHAITAN LTD B0VY3T0 $162,352 7,965 1.5
BPAN4 BANCO PAN SA BPY3V40 $158,225 97,900 1.5
1308 SITC INTERNATIONAL HOLDINGS CO., LTD. B61X7R5 $152,665 65,000 1.5
780 TONGCHENG TRAVEL HOLDINGS BGM5R25 $145,783 76,400 1.4
PARAUCO PARQUE ARAUCO S.A. 2684349 $139,102 86,231 1.3
6865 FLAT GLASS GROUP CO LTD-H BYQ9774 $138,432 96,000 1.3
694 BEIJING CAPITAL INTERNATIONAL AIRPORT CO., LTD. H SHARES 6208422 $137,466 382,000 1.3
VIVA3 VIVARA PARTICIPACOES SA BKTPCJ8 $131,078 30,500 1.2
LUN LUNDIN MINING CORP 2866857 $125,001 11,400 1.2
1368 XTEP INTERNATIONAL HOLDIN B2RJYH8 $118,186 189,500 1.1
6533 ANDES TECHNOLOGY CORP BWT3K58 $114,828 9,000 1.1
CARTRAD CARTRADE TECH LTD BNK8Z10 $113,761 11,419 1.1
BCI BANCO DE CREDITO E INVERS 2069355 $110,475 3,671 1.1
WBC WE BUY CARS PTY LTD BSB8C80 $105,392 74,685 1.0
BARBEQU BARBEQUE NATION HOSPITALI BFM70L4 $95,445 14,461 0.9
3324 AURAS TECHNOLOGY CO LTD B015YP6 $92,144 4,000 0.9
357 HAINAN MEILAN INTERNATION 6560508 $91,409 89,000 0.9
336370 SOLUS ADVANCED MATERIALS BJVLVG7 $90,243 7,066 0.9
121600 ADVANCED NANO PRODUCTS CO B404429 $89,652 1,214 0.9
RAINBOW RAINBOW CHILDREN'S MEDICA BNG3NL5 $88,066 6,210 0.8
300763 GINLONG TECHNOLOGIES CO L BMQBTQ9 $85,323 10,400 0.8
HINDWAR HINDWARE HOME INNOVATION BK4XRY7 $84,785 15,885 0.8
SEERA SEERA GROUP HOLDING B6WTLK3 $81,268 11,481 0.8
5904 POYA INTERNATIONAL CO., LTD. 6541826 $79,048 5,040 0.8
600885 HONGFA TECHNOLOGY CO LTD- BYQDM93 $74,643 19,900 0.7
SPA/F SIAM WELLNESS GROUP PCL-F BS7HXD3 $71,825 422,500 0.7
BBAJIOO BANCO DEL BAJIO SA BYSX0F3 $69,795 21,900 0.7
MAPI MITRA ADIPERKASA TBK PT B03VZ37 $67,864 774,900 0.6
300012 CENTRE TESTING INTERNATIONAL GROUP CO., LTD. A SHARES B4VM756 $67,237 43,000 0.6
1801 INNOVENT BIOLOGICS, INC. BGR6KX5 $65,873 12,500 0.6
1995 EVER SUNSHINE LIFESTYLE SERVICES GROUP, LTD. BNT8LB3 $63,458 304,000 0.6
3532 FORMOSA SUMCO TECHNOLOGY B1HKJZ7 $59,979 11,000 0.6
6531 AP MEMORY TECHNOLOGY CORP BWY5316 $58,969 5,000 0.6
AGUAS/A AGUAS ANDINAS SA-A 2311238 $55,804 188,378 0.5
SHANKAR SHANKARA BUILDING PRODUCTS, LTD. BDCT254 $49,148 5,895 0.5
BRAC BRAC BANK, LTD. B1QS725 $40,233 127,766 0.4
MBB MILITARY COMMERCIAL JOINT STOCK BANK B6SDL09 $36,956 38,200 0.4
MWG MOBILE WORLD INVESTMENT CORP. BP3RNW5 $34,602 13,800 0.3
TCP TRANSACTION CAPITAL B7WF5R3 $30,384 193,179 0.3
9996 PEIJIA MEDICAL LTD BMT7V13 $26,371 78,000 0.3
FROTO FORD OTOMOTIV SANAYI AS B03MSR5 $26,128 821 0.2
SMRA SUMMARECON AGUNG TBK PT 6538527 $25,848 730,100 0.2
CEB CEBU AIR INC B2NRDY6 $22,627 45,100 0.2
1789 AK MEDICAL HOLDINGS, LTD. BFD6SZ0 $18,019 30,000 0.2
NLG NAM LONG INVESTMENT CORP. B9FCRR9 $13,102 7,900 0.1
247540 ECOPRO BM CO LTD BJ321P7 $12,830 99 0.1
CASH CASH AND OTHERS $32,850 0.3
CURR CNY $-9,414 -0.1
CURR HKD $138 0.0
CURR TWD $0 0.0
TOTAL 41.1

Portfolio Breakdown (%)

(as of 06/30/2024)
  • Sector Allocation
  • Country Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Industrials 22.1 19.1 3.0
Information Technology 20.6 17.9 2.7
Financials 18.9 10.8 8.1
Consumer Discretionary 16.2 11.9 4.3
Health Care 10.7 8.3 2.4
Real Estate 6.0 5.8 0.2
Materials 2.3 11.3 -9.0
Consumer Staples 1.7 6.1 -4.4
Communication Services 1.4 3.6 -2.2
Utilities 0.5 3.3 -2.8
Energy 0.0 1.8 -1.8
Liabilities in Excess of Cash and Other Assets -0.4 0.0 -0.4

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.

Portfolio Characteristics

(as of 06/30/2024)
Fund Benchmark
Number of Positions 71 2,031
Weighted Average Market Cap $4.7 billion $2.1 billion
Active Share 98.3 n.a.
P/E using FY1 estimates 16.0x 14.4x
P/E using FY2 estimates 13.0x 12.2x
Price/Cash Flow 9.6 8.6
Price/Book 2.1 1.6
Return On Equity 11.9 13.1
EPS Growth (3 Yr) 30.7% 21.3%

Sources: Factset Research Systems, Inc.

Portfolio Managers

Vivek  Tanneeru photo
Vivek Tanneeru

Lead Manager

Jeremy  Sutch, CFA photo
Jeremy Sutch, CFA

Co-Manager

Alex  Zarechnak photo
Alex Zarechnak

Co-Manager

Hardy  Zhu photo
Hardy Zhu

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.

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.