Matthews Emerging Markets Equity Active ETF (MEM) is an actively managed exchange-traded fund that invests primarily in equity securities of companies located in emerging market countries. The fund seeks long-term capital appreciation by investing in companies that the fund manager believes have high-quality businesses, strong management teams, and attractive valuations.
As of February 18, 2023, MEM has a total net asset value of approximately $496.5 million. The fund has an expense ratio of 0.68% and is managed by Matthews Asia, a subsidiary of Matthews International Capital Management LLC.
MEM invests primarily in equity securities of companies located in emerging market countries, with a focus on companies that have sustainable competitive advantages, strong balance sheets, and the potential for long-term growth. The fund's investments are diversified across countries, sectors, and market capitalizations. As of January 31, 2023, the top three country exposures of the fund were China, Taiwan, and India, and the top three sector exposures were consumer discretionary, financials, and information technology.
The fund's investment process includes fundamental analysis and bottom-up stock picking. The fund manager seeks to identify companies that have sustainable business models and competitive advantages, strong financials, and attractive valuations. The fund may also invest in companies that the manager believes will benefit from secular growth trends in emerging markets.
Investors should be aware that investing in emerging market securities involves a higher degree of risk than investing in securities of developed markets. Emerging markets are subject to political and economic risks, including currency fluctuations, government instability, and changes in regulatory environments. Additionally, the liquidity of emerging market securities may be limited.
Overall, MEM may be suitable for investors seeking exposure to emerging market equities through an actively managed ETF that employs a bottom-up stock selection process. However, investors should carefully consider the risks and their investment objectives before investing in the fund.
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