Investors can share in Vietnam’s export gains

Article Excerpt

The Vietnamese economy continues to expand steadily in the wake of the pandemic—with tourism playing a key role. 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, is paying off for investors. VANECK VIETNAM ETF $12.95 (CBOE symbol VNM; TSINetwork ETF Rating: Aggressive; Market cap: $519.3 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 that 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. Financial Services account for 28% of the portfolio’s assets while Real Estate (26%), Consumer Defensive (21%), Basic Materials (12%), Industrials (10%), and Energy (2%) are other key segments. The ETF…