VNM’s struggles come as other frontier markets ETFs are delivering decent returns. Over the past month, VNM is off 12%, but the Global X Nigeria Index ETF (NYSEArca: NGE) is up 1.4% while the Global X FTSE Argentina 20 ETF (NYSEArca: ARGT) is up 1%. The iShares MSCI Frontier 100 ETF (NYSEArca: FM), the largest frontier ETF, has jumped 9% over the past three months as VNM has wilted over the same period. Vietnam is FM’s tenth-largest country weight at 1.74%. [Changes Could Lead to a Better Frontier ETF]
The imbroglio with China is making Vietnamese stocks less expensive. The VN Index’s P/E ratio fell to 12.5 on Monday, the lowest, since January, Bloomberg reported. VNM had a P/E of 13.1 and a price-to-book ratio of 1.59 at the end of April, according to Market Vectors data.
Market Vectors Vietnam ETF Sector Weights
Chart Courtesy: Market Vectors