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VN-focused fund lists on NY bourse
Viet Nam’s youthful demographics and increasing integration into the world marketplace will continue to appeal to foreign investors, Jan Van Eck, principal of US money manager Van Eck Global, said in New York last Friday, as he launched the first US-based exchange-traded fund offering exposure to the Vietnamese market on the New York Stock Exchange.
As Van Eck Global’s 21st exchange-traded fund (ETF), the Market Vectors Viet Nam ETF underscored the firm’s commitment to emerging markets and to those in Asia, in particular, Van Eck said.
"We are very committed to emerging markets and we’re big believers in the prospects for Asia, in both the short and long terms," said David Semple, Van Eck’s director of international equity investments. "Asian economies are exiting this current downturn in great shape relative to developed markets."
"We are very pleased to offer US investors access to one of the world’s most interesting emerging markets," added Van Eck in a press release. "With approximately 70 per cent of the market capitalisation ... currently in locally-listed companies, this fund offers investors convenient, one-trade access to a portfolio of Vietnamese companies."
Investing in Viet Nam might be very attractive to investors willing to take a long-term perspective on a higher risk market, said a report by Van Eck Global. The region remained relatively underpenetrated in terms of investment opportunities and the potential existed for strides on a number of economic fronts.
In addition, the report said, a relatively low correlation to markets of more developed economies might make investment in Viet Nam an attractive diversification tool.
The Market Vectors Viet Nam Index includes a broad representation of Viet Nam’s equity markets, with 28 companies in eight sectors as of July 31. The constituent stocks each represent market capitalisation of greater than US$150 million and the three-month average daily turnover greater than $1 million. The Index’s top sectors include financials, energy and materials.
On Monday, the fund, coded VNM on the New York Stock Exchange, closed up 2.06 per cent to $25.23, on a volume of 72,708 shares.
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