As Vietnam continues to shift from a controlled economy to a market economy, it is joining the world marketplace. Its agricultural products have become a significant export, and it is attracting foreign investments.
Investors wanting exposure to Vietnam can buy exchange-traded funds (ETFs) that either focus on Vietnam or have some exposure there.
We have selected four funds that offer opportunities in Vietnam for investors in the United States. Because this is an emerging market, we focused on ETFs that pay dividends, so investors can gain income while waiting for capital appreciation.
If any of the emerging market securities in these ETFs decline, investors should weigh the loss of share value against the value of the dividend. It is also important to emphasize that emerging market funds can default on dividend payments if the underlying markets fail.
Here are how the four ETFs break down. All have posted small declines year-to-date and investors will need to decide if current levels represent buying opportunities. All figures are current as of September 26, 2018.
VanEck Vectors Vietnam ETF (VNM)
VNM is the closest thing to a pure Vietnam play an investor will find. The fund tracks the performance of the MVIS Vietnam Index.