SSI launches Viet Nam's second exchange-traded fund

Thursday, Oct 23, 2014 16:49

The second exchange-traded fund (ETF) is launched in Ha Noi on October 23.— Photo

HA NOI (Biz Hub) – Saigon Securities Inc (SSI) officially launched its exchange-traded fund (ETF) at the Ha Noi Stock Exchange in the city on October 23.

The ETF SSIAM HNX30 is the second domestic ETF fund and the first to simulate the domestic HNX30 index set, said Nguyen Khac Hai, deputy general director of SSI Asset Management Company (SSIAM).

According to Hai, the ETF is a new product that was launched to help investors balance the risk and profitability of their investment channels, consisting of banks and stocks.

The deputy director noted that investors, especially the new ones, often made low profits from bank savings or faced high risks at the stock market. With the help of SSIAM, one of the leading asset management companies in Viet Nam, they will have more and better options, Hai added.

He revealed that the HNX30 items had very high liquidity, including stocks, which had a liquidity of more than 10 per cent.

SSI said HNX's value at the northern bourse in the last nine months had increased by 84 per cent compared with that of the entire 2013.

From early 2012 to date, on a period of either three, six or 12 months, HNX30 has proven to be more effective than other indices such as HNX-Index, as well as VN30, VN-Index, Market Vector VN Index and FTSE VN Index.

Founders of the fund include SSIAM, Bao Viet Securities Company, Vietcombank Security and VnDirect.

The fund is expected to mobilise at least VND50 billion (US$2.3 million) through its initial public offering, which began last October 27 and ends on November 21.

Hai said foreign investors would likely refrain from participating in the primary market, however, and would probably invest in secondary trading after witnessing traded funds.

According to SSI, the second domestic ETF will likely be listed at the Ha Noi Stock Exchange in December. — VNS

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