Matthews Asia Launches Emerging Markets Ex China Active ETF
SAN FRANCISCO, Jan. 11, 2023 (GLOBE NEWSWIRE) -- Matthews Asia launched the Matthews Emerging Markets ex China Active ETF (MEMX) on the New York Stock Exchange today, adding the “power of choice” for investors to the firm’s active ETF suite.
The Matthews Emerging Markets ex China Active ETF provides investors with the ability to separate China from their core emerging markets allocations and thereby take control over the level of China exposure they have in their portfolios. Some investors currently want to avoid exposure to China, while others are looking to customize their specific allocations. An emerging markets ex China strategy can help mitigate both country-specific and idiosyncratic risk factors, while also placing greater emphasis on a broader number of emerging market opportunities often overlooked in core emerging markets portfolios.
MEMX is managed by John Paul Lech as lead portfolio manager and Alex Zarechnak as co-portfolio manager, who also manage Matthews Emerging Markets Equity Active ETF (MEM) and Matthews Emerging Markets Equity mutual fund.
Cooper Abbott, CEO of Matthews Asia commented: “We have heard from institutional, RIA, and OCIOs that many investors want to have specific control of their China exposure, either to avoid it or to precisely allocate their exposures to this unique single-country allocation due to its size and market depth. We believe MEMX (active emerging markets ex-China equities), along with MCH (active China equities), and MEM (active emerging markets equities) enables investors to reduce single-country risk while improving diversification through exposure to other emerging markets such as smaller and selective exposure in the frontier and other markets.”
John Paul Lech, Lead Manager of MEM and MEMX commented: “In my view, emerging markets can offer investors the biggest potential for long-term growth over many other equity asset classes. With this launch, investors now have a broader set of options to control their China exposure, either as part of a core emerging markets portfolio with MEM or excluding it with MEMX and using MCH to add dedicated China exposure.”
Michael Barrer, Head of ETF Capital Markets commented: “The launch of the Matthews Emerging Markets ex China Active ETF provides investors with the power of choice in how they gain exposure to the important growth regions of emerging markets. This ETF leverages our expertise in emerging markets in order to offer a suite of actively managed investment solutions that enable investors to take a more customized approach to their emerging market portfolio and meet their risk return objectives.”
Matthews active ETFs provide investors with the same active management expertise that has served investors for over 30 years with the lineup of its mutual funds, adding benefits that include lower fees, increased tax efficiency and intra-day liquidity:
- Matthews Emerging Markets Equity Active ETF (NYSE Arca: MEM)
- Matthews Emerging Markets ex China Active ETF (NYSE Arca: MEMX)
- Matthews Asia Innovators Active ETF (NYSE Arca: MINV)
- Matthews China Active ETF (NYSE Arca: MCH)
Since 1991, we have focused our efforts and expertise within the Asia and the emerging markets, investing through a variety of market environments. As an independent, privately owned firm, Matthews is the largest dedicated Asia investment specialist in the United States. Matthews employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information, please visit matthewsasia.com.
You should carefully consider the investment objectives, risks, charges and expenses of the Matthews Asia Funds before making an investment decision. A prospectus with this and other information about the Funds may be obtained by visiting matthewsasia.com. Please read the prospectus carefully before investing.
The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international, emerging and frontier markets involve risks such as economic, social and political instability, market illiquidity, currency fluctuations, high levels of volatility, and limited regulation. Additionally, investing in emerging and frontier securities involves greater risks than investing in securities of developed markets, as issuers in these countries generally disclose less financial and other information publicly or restrict access to certain information from review by non-domestic authorities. Emerging and frontier markets tend to have less stringent and less uniform accounting, auditing and financial reporting standards, limited regulatory or governmental oversight, and limited investor protection or rights to take action against issuers, resulting in potential material risks to investors . Investing in Chinese securities involve risks. Heightened risks related to the regulatory environment and the potential actions by the Chinese government could negatively impact performance. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific industry, sector or geographic location. Pandemics and other public health emergencies can result in market volatility and disruption.
ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Matthews Asia Funds are distributed in the U.S. by Foreside Distributors LLC and in Latin America by Picton, S.A.
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