ETF cuts Vietnam risk

Article Excerpt

MARKET VECTORS VIETNAM ETF $13.72 (New York symbol VNM; buy or sell through brokers) holds Vietnamese companies and foreign firms that get a significant share of their revenue from the Southeast Asian country. The ETF’s top holdings are Vingroup (conglomerate), 7.8%; Vietnam Dairy Products, 7.4%; the Bank for Foreign Trade of Vietnam, 7.0%; Masan Group (a food, resources and banking conglomerate), 6.8%; and Hao Phat Group (industrial conglomerate), 6.0%. Investing in Vietnam still comes with aboveaverage political risk. However, the fund cuts risk by investing part of its assets in firms that do a lot of their business in Vietnam but are based elsewhere. That’s a better approach than adding thinly traded, or illiquid, shares of smaller domestic firms. Market Vectors Vietnam ETF is a buy for aggressive investors. investors…