According to data from Dragon Capital Investment Fund Management Joint Stock Company (DCVFM, formerly known as VFM), as of February 22, VFMVN Diamond ETF’s portfolio size has reached 8,851 billion VND, which is a large-scale domestic fund. most of the Vietnamese stock market.
Although newly launched, VFMVN Diamond ETF has attracted great attention from investors, especially institutional investors such as Pyn Elite Fund, CTBC Vietnam Equity Fund or investment funds from Thailand, South Korea … Even, VFMVN Diamond ETF is still in the top of the largest investments of Pyn Elite Fund.
At the time of listing in May 2020, the size of VFMVN Diamond ETF was only 10.2 million fund certificates, equivalent to VND 107 billion, however up to now, the number of VFMVN Diamond ETFs circulating has reached 448.8 million fund certificates, 44 times more than when listed.
According to estimates, the net capital flow poured into VFMVN Diamond ETF since its inception is up to nearly 7,000 billion VND, thereby making a significant contribution to helping the market balance the net selling pressure of foreign investors in 2020.
Meanwhile, VFMVN30 ETF was established in 2014 and has attracted quite strong capital flows in the period of 2017 and the beginning of 2018. However, recently the capital flow into this fund has slowed down and investors have tend to choose more than VFMVN Diamond ETF. This may come from a more concentrated VFMVN Diamond ETF portfolio, with only 13-14 “out of room” foreign stocks, instead of 30 stocks like the VN30.
In addition, there are many funds using simulated index VN30 such as SSIAM VN30 ETF, MAFM VN30 ETF also cause “competition” with VFMVN30 ETF.
Since being listed up to now (May 12, 2020 – February 22, 2021), the performance of VFMVN Diamond ETF is also completely outperformed with the growth of 89%, while the growth rate of VFMVN30 ETF is only about 53 % and the growth rate of the VN-Index is 42%.
In the VFMVN Diamond ETF portfolio currently has 13 shares, of which FPT currently accounts for the largest proportion with 16.36%, followed by MWG (15.28%), VPB (11.01%), TCB (10, 57%)… In which, 4 stocks accounting for the largest proportion in the portfolio, namely FPT, MWG, VPB, and TCB, have all surpassed their historical peaks and are among the stocks with good growth recently.
With a current portfolio size of 8,851 billion VND (384 million USD), VFMVN Diamond ETF has become the second largest fund of Dragon Captial, only behind Vietnam Enterprise Investments Limited (VEIL) with about 2 billion USD.
The scale of VFMVN Diamond ETF is not only the largest among domestic funds but also equivalent to large foreign ETFs on Vietnam’s stock market such as FTSE Vietnam ETF (409 million USD) or VNM ETF (491 million USD, in which the investment in Vietnam is 320 million USD).
Although ETFs in general and VFMVN Diamond ETF in particular are attracting quite well recently, but the participation mainly by institutions, while individual investors are very little interested.
According to many experts in the market, for novice investors, new investors, choosing to invest in ETFs will help them profit well in the long term. Holding ETFs will help investors avoid “Index increases, accounts decrease”, as well as retail investors can diversify their portfolios.
Source: bizlive.vn – Translated by fintel.vn