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Why the VanEck Vietnam ETF is not a good option?

Let’s start by reminding us what an ETF is. An exchange-traded fund (or ETF) is a type of investment fund and ETS are traded on stock exchanges. ETFs are very popular because of their advantages. They are easy to trade, they offer diversification and they can offer access to emerging markets like Vietnam.


Vietnam has undergone such dramatic shifts in recent decades that many investors have started to look at the country’s stock market as an area of potential investment. There is only one ETF dedicated to Vietnam at the moment: the VanEck Vietnam ETF. VanEck Vietnam ETF (VNM®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Vietnam Index, which includes securities of publicly traded companies that are incorporated in Vietnam or that are incorporated outside of Vietnam but have at least 50% of their revenues/related assets in Vietnam. The expense ratio is quite low at 0.66%, but this is not surprising since typical ETF expense ratios are less than 1%.


However, let’s have a look at the ETF performance by starting to look at the performance over the last 12 months.

Now, let’s have a look at the ETF performance over the last 10 years.

The numbers are simply terrible for the ETF.



There are different factors that can explain why the VanEck Vectors Vietnam ETF underperformed the indexes and our average client’s performance by a so wild margin.


In addition, because it’s way easier to interpret performances in a bar chart, let’s see those same numbers with this new perspective:




Obviously investing through Anh Thomas Investment had been the best option for our clients. Our fees are higher (when your performance is high) than for the ETF, but:


1. Performances are totally incomparable with +572.1% for our clients and only a +12.9% for the ETF over the last 10 years.

2. The ETF fees are low, but you have to pay them regardless of your performance. With Anh Thomas Investment, you only pay fees when your portfolio record an annual performance above +5%.


So, what are you waiting for?


Contact us now at info@anhthonas.com, we look forward to speak to you.


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