Matthews Emerging Markets Discovery Active ETF (MEMS)

Overview

The Matthews Emerging Markets Discovery Active ETF (ADEM) is an actively managed ETF focused on investing in small- and mid-cap companies within emerging markets, aiming for long-term capital appreciation by identifying undervalued growth opportunities.

Reputation and Reliability

Matthews Asia is a well-regarded investment firm with a long history of specializing in Asian and emerging markets, known for its research-driven investment approach.

Management Expertise

The management team has considerable experience in emerging markets investing, with a focus on bottom-up fundamental research to identify promising companies.

Goal

Seeks long-term capital appreciation by investing in emerging markets small and mid-cap companies.

Investment Approach and Strategy

Strategy: Active management through bottom-up fundamental research.

Composition Primarily invests in equities of small- and mid-cap companies in emerging markets.

Market Share: The market share of ADEM within the emerging markets small/mid-cap active ETF category is relatively small compared to broader EM ETFs.

Total Net Assets (AUM): 41130000

Key Competitors

• DEM
• EEMS
• FNDE

Competitive Landscape

The emerging market ETF landscape is competitive, with both passive and active strategies. ADEM's active management and focus on small/mid-caps differentiate it, potentially offering higher alpha but also higher risk. Competitors with broader market exposure may have lower volatility but potentially lower growth prospects.

Historical Performance: Historical performance data is not available in this response but should be collected for a full overview.

Benchmark Comparison: Benchmark comparison is not available in this response.

Expense Ratio: 0.79

Average Trading Volume

The ETF exhibits moderate liquidity as reflected by its moderate average trading volume.

Bid-Ask Spread

The bid-ask spread is variable and depends on the market conditions, but typically reflects the smaller size and less liquid nature of the underlying holdings.

Market Environment Factors

Emerging market economic growth, global trade conditions, and geopolitical risks all influence ADEM. Sector growth prospects within emerging markets, particularly in technology and consumer discretionary, also play a role.

Growth Trajectory

ADEM's growth trajectory is tied to the success of its active management and the performance of emerging market small- and mid-cap companies. Changes in strategy and holdings will depend on market opportunities identified by the fund managers.

Competitive Edge

ADEM's competitive advantage lies in its focused approach on small- and mid-cap emerging market companies, leveraging Matthews Asia's expertise in the region. The fund's active management seeks to identify undervalued companies with strong growth potential. This targeted strategy allows the fund to potentially generate alpha compared to broad-based emerging market ETFs. The fund's bottom-up research process differentiates it from passive index-tracking funds.

Volatility

ADEM is expected to have higher volatility than broader emerging market ETFs due to its focus on smaller companies.

Market Risk

Specific risks include emerging market political and economic instability, currency fluctuations, and regulatory changes affecting companies in these regions.

Ideal Investor Profile

The ideal investor is one with a high risk tolerance, a long-term investment horizon, and a desire to gain exposure to the growth potential of emerging market small- and mid-cap companies.

Market Risk

ADEM is suitable for long-term investors seeking capital appreciation and willing to accept higher volatility.

Matthews Emerging Markets Discovery Active ETF (ADEM) targets small- and mid-cap emerging market companies for long-term capital appreciation through active management. It offers a focused approach compared to broad emerging market ETFs, potentially yielding higher returns but also higher risk. The fund leverages Matthews Asia's expertise and bottom-up research. ADEM is suitable for investors with a high risk tolerance and a long-term investment horizon. Its active management strategy seeks to generate alpha within the emerging markets.

Data Sources:

• Matthews Asia Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Market share information is subject to change and may not be available for specific sub-categories. Historical Performance needs further research.