An Efficient Means of Investing in Vietnamese Blue-chip Stocks

On hand at the Mirae Asset VN30 ETF listing ceremony are, from the fourth from left, Kang Moon-kyung, head of Mirae Asset Daewoo (Vietnam), Seol Kyung-seok, general manager of Mirae Asset Group Vietnam, Soh Jin-wook, head of Mirae Asset Global Investments (Vietnam), Nguyen Vu Quang Trung, head of the Ho Chi Minh City Stock Exchange, Shin Dong-min, president of Shinhan Bank Vietnam and Khamsaya Soukhavong, head of Mirae Asset Prevoir Life Insurance (Vietnam).

Mirae Asset Global Investments (Vietnam) announced on Dec. 8 (local time) that it has listed an exchange traded fund (ETF) that invests in 30 blue-chip stocks in Vietnam on the Ho Chi Minh City Stock Exchange. Mirae Asset Global Investments has become the first foreign fund management firms to list an ETF on the local stock exchange.

Mirae Asset VN30 ETF (Ticker: FUEMAV30) invests in 30 leading blue-chip companies representing Vietnam. The fund is expected to be an efficient means of investment that can benefit from Vietnam's economic growth as it includes stocks that are not available for direct investment for foreign investors.

The basic VN30 Index consists of 30 stocks selected in consideration of their positions as blue-chip companies including their market capitalization and liquidity, among the listed companies on the Ho Chi Minh City Stock Exchange, and will be rebalanced once a quarter.

The 30 stocks do not include those with a free float ratio of less than 10 percent. They were selected based on their daily average transaction amounts over the previous six months. Mirae Asset Global Investments will manage the fund based on a strategy of fully replicating the basic index to ensure that the variation rate of the ETF is not much different from that of the basic index.

The VN30 Index accounted for 76 percent of Vietnam's total market capitalization as of the end of November. In Korea, people can invest in Mirae Asset VN30 ETF through securities firms that can trade overseas stocks such as Mirae Asset Daewoo.

Mirae Asset Global Investments established its Vietnamese office in 2006 and has provided fund management and advisory services for a long time.

As of the end of October, the Vietnamese ETF market was worth US$400 million with six products listed, according to ETFGI, a global ETF research company.

Meanwhile, Mirae Asset Global Investments has been operating 390 ETFs in 10 countries including Vietnam, Korea, the United States, Canada, Australia, and Hong Kong. Their assets amount to about 54 trillion won, ranking Mirae Asset Global Investments 16th in net assets among global ETF management firms.

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