Matthews Emerging Markets ex China Active ETF

Matthews Emerging Markets ex China Active ETF (MEMX) is an actively managed fund. It picks stocks in emerging markets such as South Korea, Taiwan and India and largely leaves out China. Index funds such as iShares MSCI Emerging Markets ex China ETF (EMXC) follow a set list of stocks. MEMX instead relies on Matthews' managers to choose about 70 stocks, and it charges 0.79% a year, compared with 0.25% for EMXC.

• Over the year to Oct 27, 2026, MEMX returned +25.7%, 3rd of 9 among similar funds.
• Its worst full calendar year was 2024 (+5.5%); its best was 2025 (+35.8%).
• The deepest fall in its price history was 19.2% (Sep 26, 2024 to Apr 8, 2025), recovered by Jun 9, 2025.

As of Jun 30, 2026, the fund held 70 securities; the ten largest made up 43.25% of assets, and 6.25% sat in cash and money-market holdings.

• 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: +13.84%, +11.15%, +1.19%.

MEMX does not track an index. Matthews International Capital Management chooses the stocks. Under normal conditions, at least 80% of net assets go into common and preferred shares of companies in emerging market countries outside China. The prospectus defines emerging markets broadly: nearly every country except the US, Canada, Japan, Australia, New Zealand, Singapore, Hong Kong, Israel and most of Western Europe. That includes "frontier" markets, which are smaller and less developed economies such as Vietnam and Sri Lanka. Chinese companies and developed-market companies together can make up no more than 20% of assets when the fund buys. For this rule, China includes Hong Kong and Macau.

The managers look for companies they believe can keep growing. They judge balance sheets, cash flow, product lines, management quality, governance and financial health. They tend to favor medium and large companies but can buy any size. Stocks are not weighted by a formula, and there is no set rebalancing schedule. Portfolio turnover was 102%, according to the prospectus filed April 30, 2026. That means the fund traded roughly the value of its entire portfolio over the year.

The fund may put more than 25% of its assets in one country. As of June 30, 2026, South Korea made up 30.7% and Taiwan 28.3%. It can also own depositary receipts, which are US-listed certificates that stand for foreign shares, such as its Taiwan Semiconductor ADRs. On that date it held no derivatives.

• MEMX charges 0.79% a year, versus an average of 0.56% for the similar funds below (8th of 9, 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).

It is an actively managed bet on a few emerging markets, led by Korean and Taiwanese chip makers, and it costs more and swings more than a broad index fund.

MEMX launched in January 2023, so it has no record through the 2008 crisis, the 2020 COVID crash or the 2022 bear market. Its weakest calendar year, 2024, still gained 6.83%. Its deepest drop was 19.2%, from September 26, 2024 to April 8, 2025. It recovered by June 9, 2025, about two months later. Volatility, a measure of how much returns swing, was 27.9% over the year to October 27, 2026, and the fund fell 9.9% in the month to that date. Anyone who may need to sell shares in a bad stretch could be selling after a sharp drop.

The fund pays income once a year. The trailing yield was 4.16% as of October 27, 2026, but a single annual payment can vary a lot. In the SEC's standard $10,000 example, costs come to $81 after one year and $978 over 10 years. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.

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