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VietNamNews

Viet Nam's first ETF lures investor interest

Update: August, 12/2014 - 08:55
Over one month after launching its initial public offering, Viet Nam's first exchange-traded fund (ETF), VFMVN30, has begun attracting investor interest.— Photo baohaiquan

HA NOI  (VNS) — Over one month after launching its initial public offering, Viet Nam's first exchange-traded fund (ETF), VFMVN30, has begun attracting investor interest.

Managed by Vietfund Management Company, the fund had a minimum initial capital of VND50 billion (US$2.35 million). However, Pham Khanh Lynh, deputy general director of the company, believed VFMVN30 could raise VND100 billion ($4.7 million) by the time it concluded the IPO on August 20.

The fund's customers are mostly securities firms, though some individual investors are also registered to purchase its certificates for billions of dongs.

Securities companies have shown great interest in the first Vietnamese ETF, based upon the intense competitiveness in the brokerage market. Having the fund certificates in their portfolios means securities firms will possess more services for customers when VFMVN30 is listed.

Notably, ETF is one type of high-transparency investment. Investors can frequently track the fund's portfolio and their investment value. In addition, investing in ETFs is much safer than buying specific shares, Lynh noted. "As a result, the volatility of profits or losses remains lower."

Lynh noted that the fund was expected to list certificates on the HCM City Stock Exchange next month. — VNS

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