Matthews Emerging Markets Discovery Active ETF MEMS (MEMS) Fund Overview

Matthews Emerging Markets Discovery Active ETF MEMS (MEMS) Financial Services Profile

Matthews Emerging Markets Discovery Active ETF (MEMS) is a non-diversified fund targeting long-term growth by investing in small-cap companies within emerging markets like China and India. The fund actively selects common and preferred stocks, allocating at least 65% of its net assets to small companies and 80% to emerging market equities.

What Is the Investment Thesis for MEMS?

The Matthews Emerging Markets Discovery Active ETF (MEMS) presents a focused investment strategy targeting high-growth potential within emerging market small-cap equities. A key value driver is the fund's active management approach, which aims to outperform passive investment strategies by identifying undervalued or overlooked companies with strong growth prospects. The fund's concentration in emerging markets, particularly China and India, offers exposure to rapidly expanding economies and increasing consumer demand. However, investors may want to evaluate the fund's non-diversified nature, which increases risk, and the potential volatility associated with emerging markets. The fund's success hinges on the portfolio managers' ability to effectively navigate the complexities of these markets and select companies that can deliver sustainable growth. As of 2026-03-17, the fund has a market cap of $0.02 billion and a beta of 0.24.

Based on FMP financials and quantitative analysis

MEMS Key Highlights

Focus on Emerging Markets: At least 80% of the fund’s net assets are invested in companies located in emerging market countries, such as China and India.

• Small-Cap Focus: At least 65% of the fund’s net assets are invested in the common and preferred stocks of small companies, offering exposure to a potentially high-growth segment of the market.
• Active Management: The fund employs an active management strategy, where investment decisions are made by a team of portfolio managers who conduct in-depth research and analysis.
• Non-Diversified Status: The fund is non-diversified, which means it may invest a larger portion of its assets in a smaller number of issuers, potentially leading to greater risk.
• Low Beta: The fund has a beta of 0.24, indicating lower volatility compared to the overall market.

Who Are MEMS's Competitors?

MEMS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are MEMS's Key Strengths?

Focus on high-growth emerging markets.

• Active management strategy.
• Exposure to small-cap equities.
• Low beta indicates lower volatility.

What Are MEMS's Weaknesses?

Non-diversified status increases risk.

• Dependence on the performance of emerging markets.
• Small market cap may limit liquidity.
• Subject to management fee erosion if fund performance lags.

What Are the Key Risks for MEMS?

Political and economic instability in emerging markets.

• Currency fluctuations impacting investment returns.
• Increased competition from other asset management firms.
• Regulatory changes in emerging markets.
• Underperformance of active management strategy compared to passive benchmarks.

What Are MEMS's Competitive Advantages?

• Expertise in Emerging Markets: Deep understanding of the complexities and nuances of emerging market economies.
• Active Management: Ability to identify and capitalize on undervalued opportunities through research and analysis.
• Small-Cap Focus: Access to a segment of the market that may be overlooked by larger institutional investors.

What Does MEMS Do?

The Matthews Emerging Markets Discovery Active ETF (MEMS) is designed to provide investors with exposure to the high-growth potential of small-cap companies located in emerging market countries. The fund operates under the principle of active management, where investment decisions are made by a team of portfolio managers who conduct in-depth research and analysis to identify promising investment opportunities. MEMS strategically focuses on emerging markets, including China and India, recognizing their potential for significant economic expansion and corporate earnings growth. The fund's investment strategy involves allocating at least 65% of its net assets to the common and preferred stocks of small companies. This focus on small-cap equities allows the fund to tap into a segment of the market that may be overlooked by larger institutional investors, potentially leading to higher returns. Additionally, MEMS invests at least 80% of its net assets in companies located in emerging market countries, further emphasizing its commitment to capturing the growth opportunities in these regions. As a non-diversified fund, MEMS may invest a larger portion of its assets in a smaller number of issuers than a diversified fund. This means MEMS is potentially subject to greater risk than if its assets were more widely diversified.

What Products and Services Does MEMS Offer?

• Invests in common and preferred stocks of small companies.
• Targets companies located in emerging market countries, including China and India.
• Employs an active management strategy to identify promising investment opportunities.
• Allocates at least 65% of net assets to small-cap companies.
• Allocates at least 80% of net assets to companies in emerging markets.
• Operates as a non-diversified fund, potentially increasing risk.

How Does MEMS Make Money?

• Generates revenue through management fees charged to investors.
• Aims to achieve long-term capital appreciation for its investors.
• Utilizes active portfolio management to select investments.

What Industry Does MEMS Operate In?

The asset management industry is characterized by intense competition, with firms vying for investor capital through diverse investment strategies and product offerings. Emerging markets, in particular, have attracted significant attention due to their high growth potential, driven by factors such as increasing urbanization, rising disposable incomes, and technological advancements. Within this landscape, Matthews Emerging Markets Discovery Active ETF (MEMS) carves a niche by focusing on small-cap companies in these regions, aiming to capture opportunities often overlooked by larger funds. The success of MEMS is closely tied to the overall performance of emerging markets and its ability to navigate the inherent risks and volatility associated with these economies.

Who Are MEMS's Key Customers?

• Individual investors seeking exposure to emerging market small-cap equities.
• Institutional investors looking to diversify their portfolios.
• Financial advisors seeking investment options for their clients.

4 transactions · 0 purchases, 1 sales, 3 other transactions · 1 identified insiders · most recent available transactions. Purchases and sales use the reported transaction category. Other transactions include awards, exercises, gifts, withholding and unclassified activity; an acquisition or disposition alone is not a purchase or sale. These records do not establish intent.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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