Hong Kong fund introduces MSCI Viet Nam ETF

Friday, Jul 19, 2019 16:45

Premia MSCI Viet Nam ETF tracks the MSCI Viet Nam Index, which aims to capture leading large and mid-cap Viet Nam-based companies that represent 85 per cent of market capitalisation in Viet Nam. — Photo cafef.vn

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 Viet Nam ETF to seek investment opportunities in Viet Nam.

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

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

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

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

Currently, there are a number of investment funds in Viet Nam 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 in funding, and Schroder ISF Frontier Markets Equity with $1 billion, among others.

The launch of Premia MSCI Viet Nam 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 Viet Nam. — VNS

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