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Matthews Korea Active ETF
MKOR

Snapshot
  • Listing Date: 7/17/2023
  • Unconstrained all-cap strategy focused on secular growth opportunities in Korea
  • Fundamental bottom-up approach seeks companies with sustainable business models, strong governance and improving competitive advantages against global peers
  • Highly differentiated portfolio offers exposure to new economy growth drivers overlooked by index

10/29/2010

Inception Date

-4.60%

NAV YTD Return

(as of 02/27/2024)

$25.10

NAV

(as of 02/27/2024)

-0.31

1 Day NAV Change

(as of 02/27/2024)

Objective

Long-term capital appreciation

Strategy

Under normal circumstances, the Matthews Korea 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 South Korea. 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.

Fund Facts
Inception Date 10/29/2010
Fund Assets $62.57 million (02/27/2024)
Currency USD
Ticker MKOR
Cusip 577-125-784
Primary Exchange NYSE Arca
Benchmark Korea Composite Stock Price Index MSCI Korea Index
Geographic Focus South Korea
Fees & Expenses
Gross Expense Ratio 0.79%

Performance

  • Monthly
  • Quarterly
  • Calendar Year
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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 Korea Active ETF - MKOR
10/29/2010
NAV
-8.25% 8.99% -8.25% -3.37% -8.44% 1.88% 3.99% 5.12%
Market Price
-7.45% 8.32% -7.45% -4.05% -8.65% 1.74% 3.91% 5.06%
Korea Composite Stock Price Index
-8.96% 11.77% -8.96% -3.61% -9.51% 0.83% 2.24% 2.64%
MSCI Korea Index
-9.99% 11.69% -9.99% -1.02% -10.45% 1.62% 3.11% 3.58%
As of 12/31/2023
Average Annual Total Returns
Name 1MO 3MO YTD 1YR 3YR 5YR 10YR Since Inception Inception Date
Matthews Korea Active ETF - MKOR
10/29/2010
NAV
5.62% 10.92% 15.41% 15.41% -4.91% 4.71% 4.27% 5.84%
Market Price
5.54% 10.03% 13.62% 13.62% -5.41% 4.38% 4.11% 5.72%
Korea Composite Stock Price Index
5.82% 13.57% 17.24% 17.24% -6.41% 4.31% 2.61% 3.37%
MSCI Korea Index
6.74% 15.42% 23.59% 23.59% -6.83% 5.84% 3.62% 4.44%
For the years ended December 31st
Name 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Matthews Korea Active ETF - MKOR
NAV
15.41% -25.39% -0.16% 40.76% 4.01% -22.15% 44.11% -6.31% 15.27% -0.39%
Market Price
13.62% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Korea Composite Stock Price Index
n.a. -28.64% -4.79% 39.76% 4.46% -20.07% 37.71% 0.98% -4.61% -8.30%

The Matthews Korea ETF acquired the assets and liabilities of the predecessor mutual fund, the Matthews Korea Fund, on July 17, 2023. As a result of the transaction, the Fund adopted the accounting and performance history of its predecessor mutual fund. Performance results shown prior to July 17, 2023, reflect the performance of the predecessor mutual fund. The Market Price returns shown prior to July 17, 2023 reflects the predecessor mutual fund’s NAV.

KOSPI performance data may be readjusted periodically by the Korea Exchange due to certain factors, including the declaration of dividends.

Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.

MSCI and MICM are the sources of MSCI Korea Index performance data.

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.

NAV & Market Price

(as of 02/27/2024)
NAV $25.10
NAV Change -0.31
Market Price $24.98
Market Price Change -0.22
Day's Trading Volume 1,405 Shares
Median BID/ASK Spread (30 Day) 0.32% (as of 02/27/2024)
Premium Discount -0.48%
Number of days at Premium/Discount
2024 2023
Q1
Premium 6 45
Discount 32 68

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.

Top 10 Holdings

(as of 02/28/2024)
Ticker Name SEDOL Market Value Shares % Net Assets
005935 SAMSUNG ELECTRONICS CO., LTD., PFD. 6773812 $7,840,812 169,963 12.5
000660 SK HYNIX, INC. 6450267 $4,438,065 38,406 7.1
005930 SAMSUNG ELECTRONICS CO., LTD. 6771720 $3,017,385 55,089 4.8
105560 KB FINANCIAL GROUP, INC. B3DF0Y6 $2,281,366 48,660 3.6
282330 BGF RETAIL CO., LTD. BD95QN1 $2,262,437 23,163 3.6
010950 S-OIL CORP. 6406055 $2,226,035 40,697 3.6
006400 SAMSUNG SDI CO., LTD. 6771645 $2,178,451 7,610 3.5
033780 KT&G CORP. 6175076 $2,157,691 31,283 3.4
035420 NAVER CORP. 6560393 $2,110,673 14,046 3.4
005380 HYUNDAI MOTOR CO. 6451055 $2,036,196 11,363 3.2
000810 SAMSUNG FIRE & MARINE INSURANCE CO., LTD. 6155250 $2,034,510 9,226 3.2
000270 KIA MOTORS CORP. 6490928 $1,933,476 22,854 3.1
207940 SAMSUNG BIOLOGICS CO., LTD. BYNJCV6 $1,929,961 3,183 3.1
012330 HYUNDAI MOBIS CO., LTD. 6449544 $1,908,070 10,876 3.0
088980 MACQUARIE KOREA INFRASTRUCTURE FUND B10S8B7 $1,610,133 170,215 2.6
000100 YUHAN CORP. 6988337 $1,469,656 28,185 2.3
140860 PARK SYSTEMS CORP BD0CJ98 $1,446,000 11,361 2.3
017670 SK TELECOM CO., LTD. 6224871 $1,390,619 35,389 2.2
041830 INBODY CO LTD 6315054 $1,163,290 58,870 1.9
051910 LG CHEM, LTD. 6346913 $1,056,330 3,017 1.7
CPNG COUPANG INC BNYHDF3 $1,029,057 60,927 1.6
365550 ESR KENDALL SQUARE REIT C BNNGHG0 $1,021,139 348,037 1.6
010620 HYUNDAI MIPO DOCKYARD 6451066 $986,727 21,389 1.6
028050 SAMSUNG ENGINEERING CO LT 6765239 $971,640 53,996 1.6
084370 EUGENE TECHNOLOGY CO., LTD. B0TBHH9 $897,908 33,013 1.4
093320 KINX INC B40MN71 $887,155 12,710 1.4
035720 KAKAO CORP. 6194037 $882,076 20,669 1.4
058470 LEENO INDUSTRIAL, INC. 6430139 $871,510 5,888 1.4
010130 KOREA ZINC CO., LTD. 6495428 $809,652 2,358 1.3
183300 KOMICO LTD BYXYVM5 $731,991 16,597 1.2
028670 PAN OCEAN CO LTD B24FX49 $650,398 191,515 1.0
009150 SAMSUNG ELECTRO-MECHANICS 6771689 $646,382 6,275 1.0
403870 HPSP CO LTD BPDWY61 $571,395 14,322 0.9
178920 PI ADVANCED MATERIALS CO BSTLJW4 $557,434 33,955 0.9
035250 KANGWON LAND, INC. 6683449 $305,062 23,744 0.5
CASH CASH AND OTHERS $4,332,176 6.9
CURR KRW $37,118 0.1
TOTAL 48.7

Portfolio Breakdown (%)

(as of 12/31/2023)
  • Sector Allocation
  • Market Cap Exposure
Sector Fund Benchmark Difference
Information Technology 38.0 33.1 4.9
Consumer Discretionary 10.8 9.5 1.3
Consumer Staples 9.4 3.6 5.8
Communication Services 8.6 5.9 2.7
Financials 7.3 9.2 -1.9
Health Care 6.2 6.5 -0.3
Industrials 5.6 20.4 -14.8
Materials 4.4 9.1 -4.7
Energy 3.3 1.5 1.8
Utilities 0.0 0.8 -0.8
Real Estate 0.0 0.4 -0.4
Cash and Other Assets, Less Liabilities 6.4 0.0 6.4

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) 43.9 46.6 -2.7
Large Cap ($10B-$25B) 9.4 15.0 -5.6
Mid Cap ($3B-$10B) 20.5 20.1 0.4
Small Cap (under $3B) 19.9 18.3 1.6
Cash and Other Assets, Less Liabilities 6.4 0.0 6.4

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 12/31/2023)
Fund Benchmark
Number of Positions 35 834
Weighted Average Market Cap $93.2 billion $108.3 billion
Active Share 70.2 n.a.
P/E using FY1 estimates 12.8x n.a.
P/E using FY2 estimates 10.8x n.a.
Price/Cash Flow 5.8 4.5
Price/Book 1.3 1.0
Return On Equity 13.5 10.1
EPS Growth (3 Yr) 32.9% 29.9%

Sources: Factset Research Systems, Inc.

Portfolio Managers

Michael J. Oh, CFA photo
Michael J. Oh, CFA

Lead Manager

Elli  Lee photo
Elli Lee

Lead Manager

Sojung  Park photo
Sojung Park

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.