Van Eck Launches Vietnam ETF

No doubt about it, the war with Vietnam is officially over.

Van Eck launched the Market Vectors Vietnam ETF (VNM) on the NYSE Arca Friday. The fund tracks the Market Vectors Vietnam Index (MNVNM), a rules-based, modified capitalization weighted, float-adjusted index. The index comprises “a broad representation” of Vietnam’s equity market with 28 companies in eight sectors. The top sectors include Financials (37% of the index), Energy (19%) and Materials (12%).

Van Eck says currently 70% of the Vietnam Index’ market capitalization is comprised of companies domiciled and primarily listed on an exchange in Vietnam. In addition, they must generate at least 50% of their revenues from Vietnam.. This percentage is expected to increase in the future. Currently, about 30% of the index is comprised of non-Vietnamese companies that generate, or are expected to generate, at least 50% of their revenues from Vietnam, or that demonstrate a significant position in the Vietnamese market.

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