CGNG vs MEMS

CGNGACapital Group New Geography Equity ETF

MEMSDMatthews Emerging Markets Discovery Active ETF MEMS

In short

CGNG Most emerging-markets funds sort companies by headquarters address. CGNG sorts by where the money is made, so a developed-country firm earning heavily in developing economies can qualify. Capital Group runs it actively against the MSCI EM benchmark.

MEMS Most emerging-markets funds are a bet on a handful of giants. MEMS shops the other end of the shelf: an active portfolio with at least 65% in small emerging-market companies, at 0.89% net of a waiver through April 30, 2027.

Stated mandate

CGNG The fund seeks long-term capital appreciation by investing primarily in common stocks of companies with significant exposure to developing economies or markets, including companies domiciled in developed countries when a significant share of their assets or revenues is attributable to developing countries.

MEMS The fund invests primarily in stocks of small companies located in emerging-market countries, with at least 65% of net assets in small companies and at least 80% in emerging-market companies.

Why people hold it

• CGNG The mandate counts companies domiciled in developed countries when a significant share of their assets or revenues comes from developing ones. A revenue map, not a passport check.capitalgroup.com
• Actively managed by Capital Group, holding roughly 220 stocks and measured against the MSCI Emerging Markets Index rather than tracking it.
• Easy to deal in for an active EM strategy: a multi-billion-dollar fund that trades actively, which tends to keep entry and exit costs modest.
• Sits in the top quartile of the active emerging-markets ETFs we grade, one of the stronger overall builds in a crowded field.

• MEMS The small-cap tilt is contractual: at least 65% of net assets in small companies, at least 80% in emerging-market companies, measured against the MSCI EM Small Cap benchmark.sec.govmatthewsasia.com
• Matthews hunts capital-efficient, entrepreneurial companies with pricing power or differentiated technology, leaning toward businesses that serve rising domestic demand.matthewsasia.com
• Portfolio build is the strongest part of the package: dozens of small-cap names spread across emerging markets instead of a few oversized bets.matthewsasia.com

Worth knowing

• CGNG 0.64% a year is right at the middle for active EM funds, but systematic rivals such as AVEM, JEMA and AVXC charge 0.33%.
• Launched in 2024, so the record is short and has not been tested across a full emerging-markets cycle.
• Because eligibility follows revenue, the country mix can look quite different from a standard EM index, including names based in developed markets.

• MEMS At 0.89% net of a waiver through April 30, 2027 (0.99% gross), it prices above the category median; active EM peers FFEM (0.60%) and CGNG (0.64%) charge less.
• A small, lightly traded fund since its January 2024 launch, so spreads can be wide and limit orders do real work.
• Distributions land once or twice a year, not monthly, and EM small caps stack currency and local-market swings on top of ordinary emerging-market risk.

Full CGNG profile⁠

Full MEMS profile⁠