Hong Kong fund introduces MSCI Vietnam ETF

Premia MSCI Vietnam ETF tracks the MSCI Vietnam Index, which aims to capture leading large and mid-cap Vietnam-based companies that represent 85 percent of market capitalisation in Vietnam. (Photo: cafef.vn)

Hanoi (VNS/VNA) - Hong Kong-based investment firm Premia Partners, one of the top 8 exchange trade fund (ETF) issuers in Hong Kong, has announced the listing of Premia MSCI Vietnam ETF to seek investment opportunities in Vietnam.

Premia MSCI Vietnam ETF tracks the MSCI Vietnam Index, which aims to capture leading large and mid-cap Vietnam-based companies that represent 85 percent of market capitalisation in Vietnam.

The index is dominated by the real estate (45.5 percent) and consumer staples (30.2 percent) sectors and comprises 16 constituents, most notably property developer Vingroup (22.0 percent) and Vinhomes (12.7 percent), and dairy producer Vinamilk (17.8 percent).

Compared to other ETFs currently operating in Vietnam’s stock market, Premia MSCI Vietnam ETF remains modest with fund size of 21 million USD.

Premia MSCI Vietnam ETF's portfolio has 16 stocks, including property developers Vingroup (VIC) (20.94 percent), Vinhomes (VHM) (12.63 percent) and Vincom Retail (VRE) (7.84 percent), dairy producer Vinamilk (VNM) (17.01 percent), Masan Group (MSN) (7.64 percent), new generation carrier Vietjet (VJC) (4.97 percent), brewer Sabeco (SAB) (4.31 percent), Vietcombank (VCB) (3.99 percent), PetroVietnam Power Corporation (POW) (1.54 percent), PetroVietnam Gas Corp (GAS) (1.47 percent), Bank for Investment and Development of Vietnam (BID) (1.39 percent) and the Vietnam National Petroleum Group (PLX) (1.17 percent).

Currently, there are a number of investment funds in Vietnam tracking the MSCI indexes, such as MSCI Frontier Markets Index and MSCI Frontier Markets 100 Index. Notable names include iShares MSCI Frontier 100 ETF with over 500 million USD in funding, and Schroder ISF Frontier Markets Equity with 1 billion USD, among others.

The launch of Premia MSCI Vietnam ETF facilitates investors with efficient market access and liquidity management tools as they position for opportunities amid market uncertainties, global supply chain reconfiguration, and new trade pacts including CPTPP and EVFTA with Vietnam. - VNS/VNA