The VN index may reach 600 by the end of the first quarter, or 20% above Wednesday’s close, and earnings growth is expected to be 15% this year, according to Bloomberg. Materials and consumer staples names, a combined 14.1% of VNM’s weight, are seen leading the earnings growth.
Betting on a fourth-quarter and/or first-quarter rally with VNM is not a bad idea. In early October 2010, the ETF was just below $25, but by mid-Januar 2011, it was flirting with $27.50. At the start of the first quarter of 2012, VNM was at $14.40, but by the end of the quarter, the ETF traded near $19.50. At the start of the fourth quarter last year, VNM traded around $16. By mid-February 2013, the ETF resided near $23.30.
Since the start of this month, VNM is up 5.2% as investors have poured $10.4 million into the fund.
Market Vectors Vietnam ETF
