At a glance
MEMS charges 0.89% a year. It has $22.6M in assets; it paid 2.57% of its price in distributions over the past 12 months, annual. Over the past year it returned +6.0% with distributions reinvested (S&P 500: +11.5%). Its ten largest positions make up 30.8% of the fund, out of 77 in all.
The short version
Matthews Emerging Markets Discovery Active ETF (MEMS) is an actively managed fund that picks smaller companies in emerging markets, led by Taiwan, India and South Korea, instead of tracking an index. As of June 30, 2026, it held 77 companies and $22.6 million in assets; as a non-diversified fund, it may concentrate in fewer stocks than a diversified fund. Its 0.89% expense ratio, after a fee waiver, is more than most index funds charge.
Price history
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MEMS +6.0% 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 | |
|---|---|---|---|---|---|---|
| MEMS official prospectus, to Dec 31, 2025 | — | +11.14% | — | — | — | +3.15% |
| MEMS price data to Oct 27, 2026 | +10.1% | +6.0% | — | — | — | +5.3% |
- Over the year to Oct 27, 2026, MEMS returned +6.0%.
- Its worst full calendar year was 2025 (+11.2%); its best was 2025 (+11.2%).
- The deepest fall in its price history was 22.2% (Oct 7, 2024 to Apr 8, 2025), recovered by Sep 8, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.1% | — |
| 2025 | +11.2% | +11.14% |
| 2024 | -5.7% | — |
| 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 | $0.7200 | +118.2% |
| 2024 | $0.3300 |
What's inside
As of Jun 30, 2026, the fund held 77 securities; the ten largest made up 30.79% of assets, and 7.18% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| BANDHAN BANK LTD | 4.10% | |
| EUGENE TECHNOLOGY CO LTD | 4.02% | |
| ELITE MATERIAL COMPANY LTD | 3.74% | |
| LEGEND BIOTECH CORP | 3.23% | |
| HUGEL INC | 3.14% | |
| GOLD CIRCUIT ELECTRONICS LTD | 2.83% | |
| CARTRADE TECH LTD | 2.71% | |
| ASTOR ENERJI AS | 2.42% | |
| RADICO KHAITAN LTD | 2.31% | |
| ASPEED TECHNOLOGY INC | 2.29% | |
| YAGEO CORP | 2.08% | |
| ASMPT LTD | 2.01% | |
| HD HYUNDAI CO LTD | 1.84% | |
| POYA INTERNATIONAL CO LTD | 1.78% | |
| BHARTI HEXACOM LTD | 1.72% |
By country
Taiwan 22.52%India 21.58%South Korea 13.14%Cayman Islands 11.04%Brazil 3.67%By asset type
Stocks 92.8%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +19.29%, +3.43%, +0.26%.
How it works
MEMS does not track an index; Matthews International Capital Management's managers pick each stock. At least 80% of net assets goes to companies located in emerging markets, generally anywhere outside the US, most of Western Europe and other developed markets such as Japan, Hong Kong and Singapore. At least 65% goes to smaller companies: those with a market value no higher than $5 billion or that of the largest company in the MSCI Emerging Markets Small Cap Index, whichever is greater.
The managers favor smaller companies in growth industries, judging balance sheets, cash flow, management depth and integrity, product lines, governance and financial health. With no index to follow, holdings change when the managers' views do. Turnover, the share of the portfolio replaced in a year, was 42%, according to the prospectus filed April 30, 2026.
MEMS is a plain stock ETF with no leverage, and its June 30, 2026 holdings report listed no derivatives. It is non-diversified, meaning it can hold fewer companies than a diversified fund, and it may put over 25% of assets in one country, such as China. It can own depositary receipts, certificates traded on another market that represent foreign shares. It may hedge currencies but held no hedges on that report, so currency swings against the dollar flow through to returns.
What it really costs
- MEMS charges 0.89% a year.
- Of that, 0.99% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.1% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,204 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MEMS | $91 | $305 | $537 | $1,204 |
In a retirement portfolio
It is a non-diversified fund of smaller emerging markets companies, with under three years of history and annualized price volatility of 23.4% over the year to October 27, 2026.
MEMS could add exposure to smaller emerging markets companies, mainly in Taiwan, India and South Korea. It launched January 11, 2024, so it has no record in the 2008, 2020 or 2022 downturns. Its deepest drop, 22.2%, ran from October 7, 2024 to April 8, 2025; it recovered by September 8, 2025, about five months later. Its only full calendar year, 2025, returned 11.14%; its partial launch year, 2024, lost 5.66% based on price. Withdrawals made near that low would have locked in losses.
The fund pays income once a year; its yield over the past 12 months was 2.57% as of October 27, 2026. Its 0.89% expense ratio works out to $91 in the first year and $1,204 over 10 years on $10,000, under the SEC's standard example. Past results don't predict future returns, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small position in smaller Taiwanese, Indian and South Korean companies, led on June 30, 2026 by Bandhan Bank and Eugene Technology.
- Investors willing to pay 0.89% a year, after a fee waiver, for active stock picking among smaller emerging markets companies.
- Long-term holders who can ride out drops like the 22.2% fall from October 2024 to April 2025 without needing the money.
Look elsewhere if
- Retirees who want monthly or quarterly income: MEMS pays once a year, and its 12-month yield was 2.57% as of October 27, 2026.
- Cost-focused investors: index funds generally charge less than its 0.89%, and the SEC example shows $1,204 in costs over 10 years on $10,000.
- Anyone wanting a long track record or a large fund: MEMS launched in January 2024 and held $22.6 million as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
What does MEMS invest in?
MEMS invests in smaller companies in emerging markets, picked by Matthews' managers rather than an index. As of June 30, 2026, it held 77 companies. The largest were Bandhan Bank (4.1%), Eugene Technology (4.0%), Elite Material (3.7%), Legend Biotech (3.2%) and Hugel (3.1%), and the top 10 made up 30.8% of assets. Taiwan (22.5%), India (21.6%) and South Korea (13.1%) were the biggest country weights, and 7.18% was in cash.
Is MEMS an index fund?
No. MEMS is an actively managed ETF: Matthews' managers pick its stocks after studying factors such as cash flow, balance sheets and management quality, instead of copying an index. It also targets smaller companies, putting at least 65% of net assets into firms worth no more than $5 billion or the largest company in the MSCI Emerging Markets Small Cap Index, whichever is greater. Most broad emerging markets index funds weight companies by market value, so big firms dominate, and index funds generally charge less than MEMS's 0.89%.
How has MEMS performed since launch?
MEMS has posted modest, uneven results over a short history. It returned 11.14% in 2025, its first full calendar year, and averaged 3.15% a year from its January 11, 2024 launch through December 31, 2025, according to its prospectus. Based on price, it lost 5.66% in its 2024 launch year and gained 10.1% in 2026 through October 27. Its deepest drop, 22.2%, ran from October 7, 2024 to April 8, 2025; it recovered by September 8, 2025.
Does MEMS pay dividends?
Yes, but only once a year. MEMS paid $0.72 per share over the 12 months to October 27, 2026, a yield of 2.57% at that date. Income is not the goal: the prospectus states the objective as long-term capital appreciation, meaning growth in share value. The payment can vary from year to year. People who rely on monthly or quarterly income would need to plan around a single annual payout.
What is the MEMS expense ratio?
MEMS's net expense ratio, the yearly fee taken out of fund assets, is 0.89%, according to its prospectus filed April 30, 2026. That reflects a 0.99% management fee reduced by a 0.10% fee waiver. Under the SEC's standard example, which assumes $10,000 invested, a 5% yearly return and shares cashed out at the end of each period, costs would total about $91 after one year, $305 after three, $537 after five and $1,204 after 10.