Ho Chi Minh Stock Exchange headquarters. The exchange-traded fund VFMVN Diamond officially listed more than 10.2 million fund certificateson the bourse on Tuesday. — Photo vietnambiz.vn

The exchange-traded fund VFMVN Diamond officially listed more than 10.2 million fund certificates worth VND102 billion (US$4.3 million) on the Ho Chi Minh Stock Exchange (HoSE) on Tuesday under the code FUEVFVND.

The certificates closed the first trading day at VND10,500 apiece, lower than the reference price of VND11,693.36 per certificate.

ETF VFMVN Diamond is a fund that mimics VN Diamond, one of the three indices, together with VN Fin Lead and VN Fin Select, introduced by HoSE last November.

Stocks must meet certain conditions in terms of market cap, transaction value, and foreign ownership to be included in the VN Diamond Index.

They should also have foreign ownership of at least 95 per cent of the limit and the remaining stake foreign investors can buy should not be worth more than VND500 billion ($21.5 million).

The market cap of individual stocks is 15 per cent of the index and any one industry must not account for more than 40 per cent.

According to HoSE, ETF VFMVN Diamond can invest in all sectors of the stock market not prohibited by law.

Its investment assets include stocks listed and traded on Vietnamese stock exchanges, deposits at commercial banks in accordance with relevant legal regulations, derivative securities listed and traded on Vietnamese stock exchanges, and rights and assets associated with securities in its portfolio.

The listing of the fund certificates is expected to help diversify products in the stock market and offer more investment options.

The State Securities Commission of Viet Nam issued a certificate of registration to ETF VFMVN Diamond on April 27. — VNS