ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • 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 of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. In 2022, Try This Single-Country ETF
Beyond Basic Beta Channel
Share

In 2022, Try This Single-Country ETF

Tom LydonDec 30, 2021
2021-12-30

For all the talk about equity weakness in various developing economies this year, there are some pockets of strength, too.

VanEck Vietnam ETF

Consider Vietnamese stocks and the VanEck Vectors Vietnam ETF (VNM C+). The lone Vietnam exchange traded fund is higher by more than 20% year-to-date, comfortably outpacing the MSCI Emerging Markets Index.

To be fair, Vietnam is currently classified as a frontier market, and VNM is slightly trailing the MSCI Frontier and Emerging Markets Select Index, of which Vietnamese stocks are members. However, the modest lag by VNM relative to that index is impressive when considering the frontier markets benchmark is heavy on major oil-producing nations, of which Vietnam is not one. That could be a sign that VNM is poised for another solid showing in 2022.

“Known for its relatively young population and strong manufacturing sector, the country has been a primary beneficiary of increased globalization, with multiple international free trade agreements with global trade blocs,” says Nicolas Fonseca, VanEck associate portfolio manager. “Economic growth, a burgeoning middle class and attractive stock market returns have made Vietnam an attractive investment for foreign investors.”

Home to nearly $585 million in assets under management, VNM turns 13 years old next August. The fund follows the MVIS Vietnam Index. Due to the small size of Vietnam’s equity market, VNM’s underlying index allots for companies that derive at least 50% of revenue in the country, in addition to firms based there.

Combined, the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) are homes to just 760 stocks — far fewer than what investors find in markets like the U.S. and China. However, that’s just a number, and what’s important is market capitalization expansion, which Vietnam is delivering.

“The stock market capitalization of listed domestic companies as a percent of GDP increased rapidly from 12.5% in 2008 to 69.6% in 2020, according to the World Bank,” notes Fonseca.

No guarantees, but a catalyst that could emerge for VNM in 2022 is Vietnam finally gaining the long-coveted emerging markets promotion. It’s something the government there wants, and if attained, it’d almost certainly spark VNM higher.

“The Vietnamese government has been keen on pushing for that transition as it already meets some of the criteria for being an emerging market and continues working on attracting foreign capital to maintain its long-term growth. The government expects to be upgraded to emerging market status by 2025 and has been actively cooperating with global index providers to find a solution for a possible upgrade, as it is the largest market within the frontier market universes and one of the best structural growth stories,” concludes Fonseca.

For more news, information, and strategy, visit the Beyond Basic Beta Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

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