International X MSCI Vietnam ETF (VNAM), listed December 9, on the New York Inventory Alternate Arca final yr, focuses on blue chip shares in actual property, financials and client staples.
The fund has elevated its belongings from round $1 million when first established to $8.63 million now, with the highest holding as of final month being HPG of steelmaker Hoa Phat Group, at 10.92 % of its web belongings.
Different tickers it has guess on are VHM of actual property big Vinhomes, at 8.41 % of web belongings, VIC of greatest personal conglomerate Vingroup, 7.31 %, and MSN of conglomerate Masan Group, 6.43 %.
The fund, managed by a unit of South Korean monetary group Mirae Asset, sees long-term development potential in Vietnam and pegs GDP development determine for the nation at 6 % yearly from 2022 to 2025.
“Vietnam’s promising financial trajectory leads commentators to usually evaluate it to China or the 4 Asian Tigers (South Korea, Singapore, Taiwan and Hong Kong), implying that the nation may proceed to emerge as a regional, if not international, powerhouse,” mentioned fund supervisor Dillon Jaghory in a be aware on its web site.
The rising investments by VNAM stirs hope that extra overseas traders would return to Vietnam’s inventory markets this yr after web promoting a document VND62.36 trillion ($2.75 billion) price of native shares final yr.
The truth that there may be nonetheless room for overseas possession in blue chip shares and exchange-traded funds put in an excellent efficiency final yr may persuade foreigners to come back again to Vietnam’s inventory markets, James Estaugh, head of securities providers at HSBC Vietnam, mentioned in a be aware final month.
Foreigners have began to web purchase once more within the first weeks this yr, and extra may very well be contemplating rejoining Vietnam markets because the nation is poised to realize Rising Market standing over the following a number of years, he added.
One other issue that’s set to drive Vietnam’s market up is the continued rise within the variety of new native retail traders, which reached a document excessive of 1.53 million final yr, bringing the ratio of the inhabitants investing in shares to 4.4 %.
“Many overseas funds are betting on Vietnam as it’s turning into extra accessible and folks’s incomes are rising,” mentioned Tran Thien Phuoc, CEO of inventory funding app Anfin.
