CSOP will invest in Vietnamese stocks by simulating FTSE Vietnam 30 index.
CSOP Asset Management Limited has just announced the launch of CSOP FTSE Vietnam 30 ETF listed on the Hong Kong Stock Exchange. The fund plans to invest 100% of its assets in Vietnamese stocks with the closest simulation strategy according to the FTSE Vietnam 30 Index.
The new CSOP FTSE Vietnam 30 ETF fund certificates started trading on September 20 and received an initial investment of 6.5 million USD.
CSOP was founded in 2008 in China and is an asset management company in charge of offshore investments. The company manages public and private funds, as well as provides investment advisory services in Asia and globally.
CSOP is also known as one of the leading ETF (exchange-traded fund) companies in Asia. As of August 31, CSOP is managing more than 12 billion USD of total assets.
This fund manager said that ETF is the best way to access the Vietnamese market because of restrictions on foreign ownership ratio and higher level of risk.
The big man from the Hong Kong Stock Exchange stated the reason for investment because Vietnam is one of the fastest growing economies in the world, Vietnam’s GDP has grown 15 times in the past 25 years.
One of the driving forces has come from the large FDI inflows since Vietnam’s accession to the WTO in 2007. The compound growth rate (CAGR) is up to 8%, and at the same time has been targeted by many giants such as Apple, LG, and Panasonic as a place to move production.
Investing in the FTSE Vietnam 30 Index by foreign funds is because the Vietnamese market is still in its infancy, so the risk for a single stock is high. Investing in the best 30 stocks can effectively minimize volatility.
FTSE Vietnam 30 Index includes the top 30 companies by capitalization on HoSE, which are industry leaders in the fields of real estate, consumer goods, finance, retail, industry… with the maximum proportion per share only up to 10%.
As of July 29, the largest stocks in the FTSE Vietnam 30 Index are MSN (10.96%), VIC (10%), VHM (9.83%) and VNM (8.53%). The top 10 stocks account for more than 71% of this portfolio.
CSOP FTSE Vietnam 30 ETF is the third fund using FTSE’s index to specialize in investing in Vietnam. This is also the second fund to use the FTSE Vietnam 30 Index after Fubon FTSE Vietnam ETF (also a large-scale foreign fund with more than 13,000 billion VND).
Before that, another investment fund from Hong Kong, Premia MSCI Vietnam ETF, was also launched in 2019 but its performance was not too outstanding. The size of Premia MSCI Vietnam ETF is currently 23 million USD.
@ Zing News