Viet Nam will have first domestic exchange-traded fund this year. — vietstock.vn

HA NOI (Biz Hub) —Vietnam Fund Management Company (VFM) has proposed to the State Securities Commission to open an exchange-traded fund (ETF).

If the proposal is approved, it will be the first domestic fund in the Vietnamese market.

Speaking at an investment conference during the Vietnam Access Day 2014, which was held in HCM City this week, Deputy General Director of the VFM Luong Thi My Hanh stated that her company will not limit the foreign ownership rate in the ETF.

The company has planned to launch the initial public offering at the HCM City Stock Exchange in the second quarter of this year, noted Hanh.

ETF is an investment fund traded on stock exchanges and is quite similar to stocks. An ETF holds assets such as stocks, commodities, and bonds and trades close to its net asset value over the course of the trading day.

Foreign ETFs in the Vietnamese stock market include Market Vectors Vietnam ETF, FTSE Vietnam Index ETF, MSCI Frontier Markets Index ETF adn iShares MSCI Frontier 100 Index Fund. — VNS