| NASDAQ (NMS) Exchange | US Country |
The Matthews Emerging Markets Discovery Active ETF specializes in investing in small companies located in emerging market countries, with a particular focus on locales such as China and India. This ETF operates by allocating at least 65% of its net assets, including funds borrowed specifically for investment purposes, into the common and preferred stocks of these small companies. Moreover, it commits at least 80% of its net assets, again including borrowed funds, to investments in the common and preferred stocks of companies situated within emerging market countries. As a non-diversified fund, it concentrates its investments more heavily in fewer sectors or companies, which can lead to greater volatility and investment risk.
The Matthews Emerging Markets Discovery Active ETF focuses on investing a significant portion of its assets into the stocks of small companies. By concentrating on this niche, the fund seeks to capitalize on the growth potential of small-cap entities within emerging markets.
A core aspect of the fund's strategy is its investment in companies located in emerging countries, with a particular emphasis on China and India. This enables investors to partake in the growth potential of these dynamic economies, although it also introduces geopolitically related risks and challenges specific to these regions.