Analysis reveals there were fourteen Vietnam-focused ETFs in operation at the end of 2021 with a combined AUM of US$3bn, of which Dragon Capital’s two domestic ETFs made up $1.1bn of this figure
Dragon Capital Vietfund Management (DCVFM), founded in 1994 and the largest independent asset management company in Vietnam, recorded 67.9% and 45.4% (both in USD terms) growth in its DCVFM Diamond ETF (Bloomberg: FUEVFVND VN Equity) and DCVFM VN30 ETF (Bloomberg: E1VFVN30 VN Equity), respectively, for 2021 (please see the attached press release). Both outperformed the Vietnam Index which increased 39.0% for the year.
Analysis reveals there were fourteen Vietnam-focused ETFs in operation at the end of 2021 with a combined AUM of US$3bn, of which Dragon Capital’s two domestic ETFs made up $1.1bn of this figure – US$598m in the DCVFM Diamond ETF and US$474m in the DCVFM VN30 ETF.
Both of Dragon Capital’s ETFs are locally listed on the Ho Chi Minh Stock Exchange, where the total AUM of Vietnam’s nine domestic ETFs totals US$1.3bn. A further US$1.7bn trades on overseas stock exchanges.
The DCVFM Diamond ETF, which saw an NAV increase of 67.9% in 2021 – the highest of any Vietnam-focused ETF – replicates the performance of VN Diamond Index as closely as possible. The DCVFM Diamond ETF finishing 2021 with total NAV of US$598 means the fund has seen high levels of growth after being launched in April 2020 with just US$5m.
The VN Diamond Index comprises of companies listed on Ho Chi Minh Stock Exchange (HOSE) which have no or very little availability for overseas investors to trade on the market, but can be owned through the ETF. Stocks must also satisfy an index criteria which includes market capitalization, free-float, liquidity and P/E ratio, among other factors. As at 31st December 2021 the Fund had 72% of its exposure in ten companies at their foreign ownership limit, with the remaining 28% in seven companies calculated as being close to having no foreign room available.
Meanwhile DCVFM’s VN30 ETF had total NAV of $474m at the end of 2021 following an increase of 45.4% for the year. The fund tracks an index of the top 30 companies listed in Vietnam adjusted for market capitalisation, free-float and liquidity. Last year, the Vietnam Index – which tracks the entire Ho Chi Minh Stock Exchange – returned 39.0%, less than both the DCVFM Diamond ETF and the DCVFM VN30 ETF.