Although plans by Vietnamese policymakers and the central bank to lift foreign ownership limits are widely known and over a year old, the news is nonetheless good for VNM because the ETF allocates nearly 36% of its weight to the financial services sector. Several of the ETF’s top-10 holdings are bank stocks. VNM is up 13% since that article was published on Jan. 7. [Vietnam ETF Could Get a Lift from Bank Ownership News]
Nguyen Tuan, deputy manager at An Binh Securities, expects the VN index to further expand in the short-term due to favorable earnings from large-caps, Reuters reports.
VNM’s top sectors include financials 35.9%, energy 24.0% and industrials 12.8%. The ETF includes about 25% in larger names, with 4.4% in mega-caps and 20.8% in large-capitalization stocks, followed by 47.9% in mid-caps and 24% in small-caps.
Market Vectors Vietnam ETF
