Matthews Japan Active ETF

Matthews Japan Active ETF (JPAN) holds 51 Japanese stocks, led by Tokyo Electron, Mitsubishi UFJ Financial Group and Advantest, picked by a manager rather than copied from an index. Its 0.79% expense ratio (yearly fee) is higher than all five similar funds, which average 0.19%. Its three-year return of 25.3% a year through October 27, 2026, led that group, but the fund is tiny, at about $10 million in assets as of June 30, 2026.

• Over the year to Oct 27, 2026, JPAN returned +18.4%, 3rd of 6 among similar funds.
• Its worst full calendar year was 2024 (+18.2%); its best was 2025 (+23.0%).
• The deepest fall in its price history was 15.2% (Sep 26, 2024 to Apr 7, 2025), recovered by Apr 28, 2025.

As of Jun 30, 2026, the fund held 51 securities; the ten largest made up 35.76% of assets.

• Over the three months to Jun 30, 2026, investors added a net $1.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +12.38%, +6.10%, -1.09%.

JPAN is actively managed: Matthews International Capital Management picks the stocks rather than tracking an index. Normally at least 80% of net assets go into common and preferred stocks of companies tied to Japan. Matthews judges those ties with tests such as where a company is headquartered or whether at least half its revenue or profits come from Japan, and it may rely on a single test. The MSCI Japan Index is the benchmark, a yardstick rather than a holdings list. Up to 20% may go into bonds.

The manager looks for companies capable of sustainable growth, weighing balance sheets, cash flow, product lines, governance and the depth and integrity of management. Companies of any size qualify, and assets can cluster in a few sectors. The prospectus describes no weighting formula or rebalancing schedule, so position sizes are the manager's call. As of June 30, 2026, the fund held 51 stocks. The top 10 made up 35.8% of assets, led by Tokyo Electron at 6.2%.

Portfolio turnover was 122%, the equivalent of replacing the whole portfolio more than once in a year. That adds trading costs beyond the expense ratio and can create taxable gains. The holdings trade in yen, so a weaker yen lowers their value in dollars. The fund may hedge currency, but its June 30, 2026, report listed no derivatives.

• JPAN charges 0.79% a year, versus an average of 0.19% for the similar funds below (6th of 6, 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).

A single-country, actively managed stock fund with a 0.79% fee, about $10 million in assets and just over three years of history fits better as a small add-on than as a portfolio's foundation.

For a portfolio centered on US stocks, JPAN could add Japanese companies and yen exposure. It launched on September 22, 2023, so it missed the 2008, 2020 and 2022 downturns. Of its two full calendar years, the weaker one, 2024, was still an 18.92% gain. Its deepest drop, 15.2% from September 26, 2024, to April 7, 2025, was erased by April 28, 2025. So there is no long slump showing how it might hold up for someone withdrawing money in a bad year.

Its trailing 12-month yield was 4.32% as of October 27, 2026, paid once a year. With 122% turnover, that payout can include trading gains that vary. The 0.79% fee compares with a 0.19% average for similar funds. In the SEC's standard example, costs on $10,000 reach $978 after 10 years. Past results don't predict future ones, and a sound plan looks at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.