ETF Spotlight on Market Vectors Vietnam (NYSEArca: VNM) , part of a weekly series.
Assets: $280 million
Objective: Tracks the Market Vectors Vietnam Index, which gives exposure to companies that are domiciled primarily in Vietnam and generate at least half their revenue from the country.
Holdings: VNM has 32 securities; some of the largest are Petrovietnam Fertilizer & Chemical; Vietnam Construction & Import Export; and Oil & Natural Gas Corp.
What You Should Know
- The majority of the fund - 70% - is allocated to Vietnamese corporations , but another 30% goes to offshore operations in places like Singapore, the United Kingdom, Canada and Thailand.
- Financials are the top sector in VNM and get 45% of the total weighting. Energy is also significant, with 23% of the weight. Industrials account for 13.4%.
- VNM is primarily a mid- and small-cap play ; each style gets about 40% of the fund's total weight, with the rest going to large- caps.
- VNM launched on Aug. 14, 2009; since then, it has gained 14.5% .
The Latest News
- VNM was one of the market's top ETFs in January , gaining nearly 12%.
- ietnam will select its new Communist Party leaders this week, reports Nga Pham for BBC . While no sweeping changes are likely, the party could retrench itself, intensifying domestic problems and also impeding the country's integration with the rest of the world.
- While the Vietnamese economy expanded around 6.5% in 2010, the economy still suffers from high inflation, a growing deficit, a depreciating currency and diminishing foreign exchange reserves, according to VOA News .
- Vietnam is bullish about its prospects this year. Its administration believes that the country has overcome most of its difficulties in recent years and fulfilled its socio-economic targets for 2010.