Over one month after launching its initial public offering, Vietnam'sfirst exchange-traded fund (ETF), VFMVN30, has begun attracting investorinterest.
Managed by Vietfund Management Company, the fund had aminimum initial capital of 50 billion VND (2.35 million USD). However,Pham Khanh Lynh, deputy general director of the company, believedVFMVN30 could raise 100 billion VND (4.7 million USD) by the time itconcluded the IPO on August 20.
The fund's customers are mostlysecurities firms, though some individual investors are also registeredto purchase its certificates for billions of dongs.
Securitiescompanies have shown great interest in the first Vietnamese ETF, basedupon the intense competitiveness in the brokerage market. Having thefund certificates in their portfolios means securities firms willpossess more services for customers when VFMVN30 is listed.
Notably,ETF is one type of high-transparency investment. Investors canfrequently track the fund's portfolio and their investment value. Inaddition, investing in ETFs is much safer than buying specific shares,Lynh noted. "As a result, the volatility of profits or losses remainslower."
Lynh noted that the fund was expected to list certificates on the Hochiminh Stock Exchange next month.-VNA
Managed by Vietfund Management Company, the fund had aminimum initial capital of 50 billion VND (2.35 million USD). However,Pham Khanh Lynh, deputy general director of the company, believedVFMVN30 could raise 100 billion VND (4.7 million USD) by the time itconcluded the IPO on August 20.
The fund's customers are mostlysecurities firms, though some individual investors are also registeredto purchase its certificates for billions of dongs.
Securitiescompanies have shown great interest in the first Vietnamese ETF, basedupon the intense competitiveness in the brokerage market. Having thefund certificates in their portfolios means securities firms willpossess more services for customers when VFMVN30 is listed.
Notably,ETF is one type of high-transparency investment. Investors canfrequently track the fund's portfolio and their investment value. Inaddition, investing in ETFs is much safer than buying specific shares,Lynh noted. "As a result, the volatility of profits or losses remainslower."
Lynh noted that the fund was expected to list certificates on the Hochiminh Stock Exchange next month.-VNA
