The team at a 33-year-old, $9.3-billion-AUM (as of December 31) asset manager is expanding their ETF lineup to 12 funds in total.

James Cooper Abbott Matthews International Capital Management, LLC CEO

Last week, Cooper Abbott, CEO of Matthews [profile], unveiled the launch of the Matthews China Discovery Active ETF (MCHS on the Nasdaq) and the Matthews Emerging Markets Discovery Active ETF (MEMS). The two new ETFs are both series of Matthews International Funds (dba Matthews Asia Funds).

MEMS and MCHS' inception date was January 10. Both funds come with an expense raio of 89 basis points, which bakes in a 10bps fee waiver promised through April 30, 2026.

San Francisco-based Matthews International Capital Management, LLC serves as investment advisor to MCHS and MEMS, both of which are actively managed. Vivek Tanneeru serves as lead portfolio manager for MEMS, while Jeremy Sutch and Alex Zarechnak serve as co-PMs. For MCHS, Winnie Chwang and Andrew Mattock are the two lead PMs.

"Our Discovery Active ETFs leverage Matthews' deep expertise in smaller companies that can potentially provide more exposure to new business models, domestic markets, and innovative companies that can be growing quickly," Abbott states. "These new Active ETFs build on our committment to providing investors with the 'power of choice' to selectively express their investment views — both strategically and tactically — and build portfolios with more tailored Emerging Market exposures that complement their existing portfolios."

Tanneeru puts the launch of MEMs in the context of emerging markets offering investors "a rich landscape for smaller companies."

"Given their low research coverage and diversity, we believe small companies in Emerging Markets can present compelling alpha opportunities for active managers," Tanneeru states.

Mattock puts the launch of MCHS in the context of Matthews' "long history of investing in China."

"Investing in the initial stages of a company's growth can potentially offer an attractive investment opportunity," Mattock states. "Smaller companies in China often provide opportunities for higher growth in entrepreneurial businesses that offer exposure to emerging business models that can quickly adapt to local market needs."

MCHS and MEMS' other service providers include: BNY Mellon as administrator, custodian, dividend disbursing agent, and transfer agent; Foreside Funds Distributors, LLC as distributor; Paul Hastings LLP as counsel; and PricewaterhouseCoopers LLP as independent accounting firm. 

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