ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Don’t Overlook This Great News for the Vietnam ETF
Beyond Basic Beta Channel
Share

Don’t Overlook This Great News for the Vietnam ETF

Tom LydonApr 08, 2020
2020-04-08

Like so many international equity ETFs, the VanEck Vectors Vietnam ETF (VNM C+) experience a rough first quarter as the lone ETF dedicated to stocks in the Southeast Asian economy slumped more than 34%.

However, some good news could be in store for VNM, meaning investors that have been quick to dismiss the fund because of the first-quarter swoon may want to consider revisiting this product.

VNM seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Vietnam Index. The index includes securities of Vietnamese companies. A company is generally considered to be a Vietnamese company if it is incorporated in Vietnam or is incorporated outside of Vietnam but has at least 50% of its revenues/related assets in Vietnam.

In a report released Tuesday after the close of U.S. markets, index provider FTSE Russell said it’s mulling an upgrade of Vietnam’s market classification.

Why It’s Important

“Vietnam was added to the Watch List in September 2018 for possible reclassification to Secondary Emerging market status. FTSE Russell continues to engage with the Vietnam market authorities as they implement reforms aimed at developing the capital market,” said the index provider. “Vietnam is retained on the Watch List as a Frontier market and will be reviewed for possible reclassification as a Secondary Emerging market, within the FTSE Country Classification scheme at the Annual Review in September 2020.”

Translation: there’s a possibility that, at some point, Vietnam could be classified as a proper emerging market, which could qualify the country’s equities for inclusion in major benchmarks, such as the FTSE Emerging Markets Index. That’s the same index that’s tracked by the Vanguard FTSE Emerging Markets ETF (VWO A+). That’s relevant because VWO is the largest emerging markets ETF.

While Vietnam’s equity market remains small and VNM reflects that status with high concentration to the financial services and real estate sectors, the economy there is evolving. While Vietnam is currently classified as a frontier market, its economic growth has long outpaced that of the average emerging market.

“The FTSE Equity Country Classification process involves the assessment of markets against 21 criteria, known as the FTSE Quality of Markets matrix,” said FTSE Russell. “These criteria are regularly reviewed and in January 2020, several changes were introduced. A full explanation of these changes, which have not resulted in country classification changes at the March interim review.”

This article originally appeared on ETFTrends.com.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X