At a glance
EMSF charges 0.79% a year, above the 0.35% average of the 3 funds most like it (the most expensive of 4). It has $48.0M in assets, the 4th largest of that group; it paid 1.5% of its price in distributions over the past 12 months, annual. Over the past year it returned +15.8% with distributions reinvested (S&P 500: +11.5%), 2nd of those 4 funds; over three years it returned +16.1% a year. Its ten largest positions make up 52.2% of the fund, out of 57 in all.
The short version
Matthews Emerging Markets Sustainable Future Active ETF (EMSF) is an actively managed fund. Its managers pick emerging market stocks, mostly from companies that Matthews International Capital Management judges to meet its environmental, social and governance (ESG) standards. As of June 30, 2026, the portfolio was concentrated: 57 holdings, led by SK Square, Taiwan Semiconductor and Samsung Electronics. Its 0.79% annual fee is well above index peers such as IEMG, at 0.09%.
Price history
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EMSF +15.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EMSF official prospectus, to Dec 31, 2025 | — | +25.68% | — | — | — | +10.64% |
| EMSF price data to Oct 27, 2026 | +24.4% | +15.8% | +16.1% | — | — | +13.2% |
- Over the year to Oct 27, 2026, EMSF returned +15.8%, 2nd of 4 among similar funds.
- Its worst full calendar year was 2024 (-3.0%); its best was 2025 (+19.3%).
- The deepest fall in its price history was 24.7% (Oct 7, 2024 to Apr 8, 2025), recovered by Sep 11, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +24.4% | — |
| 2025 | +19.3% | +25.68% |
| 2024 | -3.0% | -2.74% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.5300 | -33.8% |
| 2024 | $0.8000 |
What's inside
As of Jun 30, 2026, the fund held 57 securities; the ten largest made up 52.23% of assets, and 3.53% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| SK SQUARE CO LTD | 8.98% | |
| TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD | 8.50% | |
| SAMSUNG ELECTRONICS CO LTD | 7.73% | |
| MICRON TECHNOLOGY INC | 5.94% | |
| ELITE MATERIAL COMPANY LTD | 4.93% | |
| EUGENE TECHNOLOGY CO LTD | 4.54% | |
| BANDHAN BANK LTD | 3.92% | |
| MARICO LTD | 2.90% | |
| HD HYUNDAI ELECTRIC CO LTD | 2.50% | |
| LAM RESEARCH CORP | 2.29% | |
| LEGEND BIOTECH CORP | 2.16% | |
| CONTEMPORARY AMPEREX TECHNOLOGY CO LTD | 2.12% | |
| DELTA ELECTRONICS INC | 1.91% | |
| POYA INTERNATIONAL CO LTD | 1.81% | |
| ASTOR ENERJI AS | 1.79% |
By country
South Korea 25.26%Taiwan 20.49%India 16.93%United States 8.23%Cayman Islands 7.53%By asset type
Stocks 96.17%Preferred stock 0.47%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $1.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +23.46%, +9.54%, +3.67%.
How it works
EMSF does not track an index. Its manager, Matthews, chooses the stocks. Under normal conditions, at least 80% of net assets go into common and preferred stocks of companies of any size in emerging market countries, such as China and India, that meet one or more of the fund's ESG standards. Up to 20% can go to companies that don't meet them. The fund can also own companies in developed countries, but it can't buy more once those make up over 20% of assets. That explains US holdings such as Micron Technology and Lam Research, which together with other US stocks made up 8.2% of assets as of June 30, 2026.
Matthews looks at a company's environmental practices, its social policies (such as employee welfare) and its governance, meaning how well management's interests line up with shareholders'. It draws on its own research, nonprofit groups and outside ESG data providers, but the final call is its own. It weighs these standards alongside ordinary financial analysis.
The prospectus does not set a fixed weighting rule or rebalancing schedule. The fund is non-diversified, so it can hold fewer companies than a typical fund. It can also put more than 25% of assets in a single country, and at times it has done so in China. Portfolio turnover was 65%, meaning it replaced roughly two-thirds of its holdings over the year. It held no derivatives as of June 30, 2026.
What it really costs
- EMSF charges 0.79% a year, versus an average of 0.35% for the similar funds below (4th of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EMSF | $81 | $252 | $439 | $978 |
In a retirement portfolio
It is a small, concentrated, non-diversified fund that has moved much more sharply than the market and charges well above index peers.
EMSF could add actively picked, ESG-screened emerging market stocks to a portfolio. It is a high-risk position. The fund launched in September 2023, so it has no record through the 2008, 2020 or 2022 downturns. Its weakest calendar year was 2024, at -2.74%. But its deepest drop was 24.7%, from October 7, 2024, to April 8, 2025, and it did not regain that peak until September 11, 2025. Over the year to October 27, 2026, its beta was 1.76, meaning it moved about 1.8 times as much as the market. Anyone who has to sell in a slump like that would lock in losses. The yield was 1.5% as of October 27, 2026, paid once a year, so it is not an income fund. In the SEC's standard example, $10,000 would cost $81 in the first year and $978 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want an actively picked, ESG-screened emerging markets stake and prefer Matthews' judgment to following an index.
- Those comfortable with heavy exposure to South Korea (25%) and Taiwan (20%) and to chip-related names such as Taiwan Semiconductor and Samsung, as of June 30, 2026.
- Long-term holders using it as a small position who can sit through drops like its 24.7% fall from October 2024 to April 2025.
Look elsewhere if
- Cost-focused investors: its 0.79% expense ratio compares with 0.09% for IEMG and 0.25% for EMXC.
- Investors seeking income: it yielded 1.5% as of October 27, 2026, and pays only once a year.
- Those wanting broad diversification or a long record: it is non-diversified, held 57 stocks and had $48 million in assets as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does EMSF invest in?
EMSF invests mainly in emerging market stocks that Matthews judges to meet its environmental, social or governance standards. As of June 30, 2026, it held 57 stocks, and the top 10 made up 52% of assets. The largest were SK Square (9.0%), Taiwan Semiconductor (8.5%), Samsung Electronics (7.7%) and Micron Technology (5.9%). By country, South Korea led at 25%, followed by Taiwan at 20%, India at 17% and the United States at 8%. China was just 4.8%.
What is the EMSF expense ratio?
EMSF's expense ratio is 0.79% a year, according to its prospectus filed April 30, 2026, with no fee waiver. That's well above the 0.35% average of its matched peers and the highest of the four funds compared. In the SEC's standard example, which assumes $10,000 invested with a 5% annual return, you would pay about $81 in the first year, $252 over three years, $439 over five years and $978 over 10 years.
What's the difference between EMSF and EEM?
EEM, the iShares MSCI Emerging Markets ETF, follows an index. EMSF is actively managed with ESG standards. The two share only about 22% of their holdings. EEM charges 0.72% versus EMSF's 0.79%, and EEM had about $31.2 billion in assets versus EMSF's $48 million. EEM returned 12.3% over one year and 21.1% a year over three years as of October 30, 2026. EMSF returned 15.8% and 16.1% as of October 27, 2026.
Does EMSF pay dividends?
Yes, but only once a year, and the amount is modest. Over the 12 months to October 27, 2026, EMSF paid $0.53 per share, for a trailing yield of 1.5%. Its goal is long-term capital growth, not income. Most of what it might return would come from rising share prices. Investors who want regular cash payments may find funds built for income a better fit for that job.
How has EMSF performed since launch?
EMSF's results have been strong but uneven. According to its prospectus, it lost 2.74% in 2024 and gained 25.68% in 2025. Its average annual return since its September 2023 launch was 10.64% through December 31, 2025. Based on price, it was up 24.4% in 2026 through October 27, but it fell 12% in the month before that date. Its deepest drop was 24.7%, from October 2024 to April 2025.