Tap Vietnam’s bright future with this ETF

Article Excerpt

Vietnam is now emerging from the pandemic, with tourism leading the way. Longer-term, it should also continue to attract foreign manufacturers looking to steer clear of any China-U.S. trade issues. Meanwhile, the country’s free-trade pact with the European Union came into effect in August 2020. That, too, should pay off for investors. Here’s an ETF that lets you tap leading Vietnamese companies as well as foreign firms that get a significant share of their revenue from this Southeast Asian nation. VANECK VIETNAM ETF $12.83 (New York symbol VNM; TSINetwork ETF Rating: Aggressive; Market cap: $306.7 million) tracks the performance of the largest publicly listed Vietnamese companies. The fund also cuts some of Vietnam’s above-average political risk by investing part of its assets in firms that are based outside of the country, but they have at least 50% of their revenues/related assets in Vietnam. It’s a better approach than adding the thinly traded, or illiquid, shares of smaller domestic firms. Real Estate accounts for 27% of the ETF’s assets,…