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MCHS ETF — Holdings & Analysis

The Matthews China Discovery Active ETF (MCHS) is an actively managed fund with approximately $0.00B in assets under management.

Launched in January 2024 by Matthews Asia, MCHS focuses on small-cap companies located in China, differentiating itself through active stock selection within this specific market segment. With an expense ratio of 0.99%, MCHS offers investors targeted exposure to the growth potential of Chinese small-cap equities, though at a higher cost than passively managed broad market ETFs. Past performance does not guarantee future results.

Matthews China Discovery Active ETF MCHS (MCHS) ETF — Price, Holdings & Analysis

The Matthews China Discovery Active ETF (MCHS) is an actively managed fund with approximately $0.00B in assets under management. Launched in January 2024 by Matthews Asia, MCHS focuses on small-cap companies located in China, differentiating itself through active stock selection within this specific market segment. With an expense ratio of 0.99%, MCHS offers investors targeted exposure to the growth potential of Chinese small-cap equities, though at a higher cost than passively managed broad market ETFs. Past performance does not guarantee future results.

ETF Overview

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. 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. The fund is non-diversified.
The Matthews China Discovery Active ETF (MCHS) aims to achieve capital appreciation by investing primarily in the common and preferred stocks of small-cap companies located in China. Under normal circumstances, the fund invests at least 65% of its net assets in these types of securities, with a minimum of 80% of its net assets allocated to companies located in China. This concentrated approach allows the fund managers to focus on identifying and investing in companies they believe have strong growth potential within the Chinese market. The fund's top holdings include Yantai Jereh Oilfield Services Group Co Ltd Class A (6.33%), Wasion Holdings Ltd (4.99%), and ACM Research Inc Class A (4.64%). MCHS's sector allocation is heavily weighted towards Industrials (28.7%) and Technology (25.3%), reflecting the fund's focus on growth-oriented sectors within the Chinese economy. The fund is non-diversified, meaning it can invest a significant portion of its assets in a smaller number of companies, which can potentially lead to higher returns but also increased risk. Past performance does not guarantee future results.

Risk Metrics

MCHS carries several specific risks. Its non-diversified status means that a significant portion of the fund's assets are concentrated in a relatively small number of holdings, increasing the impact of any single company's performance on the overall fund. The fund's focus on Chinese small-cap companies exposes it to the volatility and regulatory risks associated with the Chinese market. Sector concentration is also a factor, with significant allocations to Industrials (28.7%) and Technology (25.3%), making the fund vulnerable to downturns in these sectors. With a beta of 0.00 (3Y), the fund's volatility relative to the broader market cannot be determined. The expense ratio of 0.99% is higher than category averages, which can create a drag on performance over time. Past performance does not guarantee future results.

Expense Ratio

0.99%

What does MCHS hold?

HoldingWeight
Yantai Jereh Oilfield Services Group Co Ltd Class A (002353.SZ)6.33%
Wasion Holdings Ltd (3393.HK)4.99%
ACM Research Inc Class A (ACMR)4.64%
Atour Lifestyle Holdings Ltd ADR (ATAT)4.50%
Kingboard Laminates Holdings Ltd (1888.HK)4.44%
Acter Technology Integration Group Co Ltd Class A (603163.SS)4.36%
Grace Fabric Technology Co Ltd Class A (603256.SS)4.27%
Minth Group Ltd (0425.HK)4.12%
Time Interconnect Technology Ltd Ordinary Shares (1729.HK)4.12%
Hongfa Technology Co Ltd Class A (600885.SS)3.76%

How Is the Fund Allocated?

SectorWeight
Industrials28.7%
Technology25.3%
Consumer Cyclical13.6%
Basic Materials11.2%
Healthcare7.4%
Energy6.4%
Real Estate3.8%
Utilities1.6%
Communication Services1.4%
Consumer Defensive0.8%
CountryWeight
China54.8%
Hong Kong22.5%
Taiwan13.1%
United States4.2%
Other3.0%
Australia1.2%
Singapore1.2%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 0.00

Questions & Answers

What is MCHS and what does it track?

The Matthews China Discovery Active ETF (MCHS) is an actively managed fund that focuses on investing in small-cap companies located in China.

Launched by Matthews Asia, the fund aims to achieve capital appreciation by strategically selecting stocks within this specific market segment.

What is the expense ratio for MCHS?

The expense ratio for the Matthews China Discovery Active ETF (MCHS) is 0.99%. This means that for every $10,000 invested in the fund, $99 is used to cover the fund's operating expenses.

What are the top holdings in MCHS?

As of 2026-03-15, the top holdings in the Matthews China Discovery Active ETF (MCHS) are: Yantai Jereh Oilfield Services Group Co Ltd Class A (6.33%), Wasion Holdings Ltd (4.99%), ACM Research Inc Class A (4.64%), Atour Lifestyle Holdings Ltd ADR…

(4.50%), and Kingboard Laminates Holdings Ltd (4.44%).

Is MCHS a good long-term investment?

Whether MCHS is a suitable long-term investment depends on an individual investor's risk tolerance, investment goals, and time horizon.

MCHS offers exposure to the potential growth of Chinese small-cap companies, but it also carries risks associated with its non-diversified status, sector concentration, and exposure to the Chinese market.

How does MCHS compare to similar ETFs?

MCHS differentiates itself through its active management and focus on Chinese small-cap companies. Many China-focused ETFs are passively managed and track broad market indexes, while MCHS employs active stock selection.

The expense ratio of 0.99% is relatively high compared to passively managed China ETFs, but may be justified if the active management delivers superior returns.

Does MCHS pay dividends?

As of 2026-03-15, the Matthews China Discovery Active ETF (MCHS) has a dividend yield of 0.00%. This indicates that the fund is not currently distributing any dividends to its shareholders.