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Vietnam's ETF market has been gaining traction in recent years, with the country's first ETF launched in 2017. The market has since grown to include over 20 ETFs with a combined assets under management of over $1 billion.
The Vietnamese government has been actively promoting the development of the ETF market, recognizing its potential to attract foreign investment and improve the country's capital market infrastructure. This support has helped to create a favorable environment for ETFs to thrive.
Vietnam's ETF market is still relatively small compared to other Asian markets, but it has been growing at a rapid pace. In 2020, the market saw a 50% increase in assets under management, driven by the introduction of new ETFs and the growing interest of local investors.
Key Takeaways
Vietnamese equities have underperformed the broader market over the past year, with a total return of -20.3% compared to the S&P 500's -11.0% as of Sept. 1, 2022.
There is only one distinct ETF dedicated to the Vietnamese equity market, and that's the VanEck Vietnam ETF (VNM).
The top three holdings of VNM are Vinhomes JSC, Vingroup Joint Stock Co., and Hoa Phat Group JSC.
VanEck Vietnam
The VanEck Vietnam ETF (VNM) is a unique investment option that allows you to tap into the Vietnamese market. It has a one-year performance of -23.8%.
This ETF tracks the MVIS Vietnam Index, which includes the largest and most liquid companies operating in Vietnam. Over 82% of the fund's holdings are of companies domiciled in Vietnam.
VNM is a multi-cap ETF that invests in equities of various market capitalizations. It follows a blended strategy, investing in both growth and value stocks.
The fund's top 10 holdings are dominated by real estate and consumer staples companies. Here are the top 10 holdings of the VanEck Vietnam ETF:
The VanEck Vietnam ETF has an expense ratio of 0.59% and an annual dividend yield of 0.34%. It has an assets under management of $381.1 million.
Vietnam's Stock Market
Vietnam's stock market is moving closer to emerging market status, thanks to the swift efforts by the Vietnamese securities regulator to eliminate pre-funding requirements, which have garnered praise from FTSE Russell and Morgan Stanley.
This progress has created a golden opportunity for Vietnam to become a competitive player in the international financial arena, according to Minister of Planning and Investment Nguyen Chi Dung.
Vietnam's GDP growth is sturdy, with strides in high-tech manufacturing capabilities and strong US ties drawing investors to the nation.
The Vietnamese government is implementing progressive legal frameworks and standout initiatives, making it an increasingly attractive investment destination.
Investors seeking growth exposure outside of traditional emerging markets may find Vietnam's growth story appealing, as evidenced by the VanEck Vietnam ETF, which provides access to Vietnam's growth prospects.
Vietnam's Global Market Entry
Vietnam's Global Market Entry is gaining momentum, with the country's stock market moving closer to emerging market status. The swift efforts by the Vietnamese securities regulator have garnered praise from FTSE Russell and Morgan Stanley.
Vietnam is becoming an increasingly attractive investment destination, driven by its sturdy GDP growth and strides in high-tech manufacturing capabilities. The nation is drawing foreign investment, making it a rising star for foreign investment in Southeast Asia.
The country is seizing a "golden opportunity" to become a competitive player in the international financial arena, according to Minister of Planning and Investment Nguyen Chi Dung. With progressive legal frameworks and standout initiatives, Vietnam is well-positioned for global market entry.
Foreign businesses are expanding their operations in Vietnam, driven by robust growth and expanding infrastructure. This is cementing Vietnam's position as an attractive destination for foreign businesses looking to expand in Southeast Asia.
Vietnam's Achievements
Vietnam's stock market is moving closer to emerging market status, thanks in part to the swift efforts of the Vietnamese securities regulator to eliminate pre-funding requirements.
The regulator's efforts have garnered praise from FTSE Russell and Morgan Stanley, two prominent financial institutions.
Vietnam is emerging as one of the world's fastest-growing economies, with remarkable economic achievements that have caught the attention of Swiss broadcaster SRF.
Advances
Vietnam's stock market is moving closer to emerging market status, thanks to the swift efforts by the Vietnamese securities regulator to eliminate pre-funding requirements, which has garnered praise from FTSE Russell and Morgan Stanley.
The nation's GDP growth is sturdy, making it an attractive investment destination. Vietnam is drawing foreign investors with its high-tech manufacturing capabilities and strong US ties.
FTSE Russell and Morgan Stanley have praised Vietnam's efforts to eliminate pre-funding requirements, a significant step towards emerging market status.
A Bright Spot
Vietnam is emerging as one of the world's fastest-growing economies. Its remarkable economic achievements have caught the attention of Swiss broadcaster SRF.
The country's GDP growth has been impressive, with a 8% growth rate in 2022. This growth story is being recognized by investors, with the VanEck Vietnam ETF providing access to Vietnam's growth potential.
Vietnam is becoming an increasingly attractive investment destination, thanks to its sturdy GDP growth and strides in high-tech manufacturing capabilities. Its strong US ties are also a significant draw.
The FTSE Vietnam 30 Index has recorded a positive return of 12% in USD terms year-to-date, making it a bright spot in Asia equities.
About VanEck
VanEck is a leading provider of exchange-traded funds (ETFs) that offers a range of investment products, including those focused on emerging markets like Vietnam.
The company was founded in 1968 by Peter H. Fisher, and it has since grown to become one of the largest and most well-respected ETF providers in the world.
VanEck offers over 60 ETFs across various asset classes, including equity, fixed income, and alternatives, which are listed on major exchanges in the US and Europe.
Their ETFs are designed to track a wide range of market indices, sectors, and themes, providing investors with a variety of choices to suit their investment goals and risk tolerance.
VanEck's commitment to innovation and customer service has earned it a reputation as a trusted partner for investors seeking access to a broad range of investment opportunities.
Top Holdings
The Top Holdings of an ETF can give you a sense of what kind of companies it's invested in.
Hoa Phat Group JSC is the largest holding in this ETF, making up 10.64% of its portfolio.
Vinhomes JSC is another significant holding, accounting for 7.90% of the ETF's assets.
Joint Stock Commercial Bank for Foreign Trade of Vietnam is a key player, taking up 6.62% of the ETF.
Here are the top 10 holdings of the ETF, ranked by their weight in the portfolio:
Frequently Asked Questions
What is the best ETF for Vietnam?
The best-performing Vietnam ETF in the last year was VNAM, with a return of -18.30%. However, the largest Vietnam ETF is the VanEck Vietnam ETF VNM, with $473.17M in assets.
What is the symbol for the Vietnam ETF?
The symbol for the Vietnam ETF is VNM. It tracks the performance of publicly traded companies in Vietnam.
Sources
- https://www.investopedia.com/articles/etfs/top-vietnam-etfs/
- https://en.vietnamplus.vn/vietnams-etfs-withdraw-nearly-53-million-usd-in-november-post306238.vnp
- https://etfexpress.com/2021/06/21/emergence-etfs-vietnam-and-countrys-capital-market-evolution/
- https://stockanalysis.com/etf/vnam/
- https://finviz.com/quote.ashx
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