ETFs draw more capital in October

Hanoi (VNS/VNA) - The capital inflow into exchange-traded funds (ETFs) is returning to the market after a long period of stagnation, and even net withdrawals over the past three months.

Since the beginning of October, ETFs have net withdrawn about 1.8 trillion VND (75.4 million USD), of which Fubon FTSE Vietnam ETF alone attracted more than 900 billion VND. So far the fund has drawn a cash flow value of up to 7.2 trillion VND.

DCVFM VNDiamond ETF also made an impressive comeback after three consecutive months of being net sold, with a value of more than 1.8 trillion VND in the third quarter. Since the beginning of October, this ETF has net withdrawn about 335 billion VND, thereby raising the value of cash inflow from the beginning of this year to 4.1 trillion VND.

DCVFM VN30 ETF saw a net withdrawal of more than 400 billion VND since the beginning of October, the largest amount since the beginning of this year. Previously, in the first seven months, this ETF was being net sold strongly. Since the beginning of this year, the cash flow into VN30 ETF has remained negative by nearly 1.5 trillion VND.

V.N.M ETF has attracted 247 billion VND since the beginning of October. Previously, this ETF continuously net sold nearly 1.2 trillion VND after nine months.

On the other hand, the capital inflow into SSIAM VNFinLead ETF is showing signs of reversing as it was net sold 52 billion VND since the beginning of October after drawing money inflow for six consecutive months. The FTSE Vietnam ETF is also slowing down after three successful months of withdrawals. However, since the beginning of this year, both FinLead ETF and FTSE ETF have been attracting money with a value of more than 450 billion VND and nearly 200 billion VND, respectively.

Capital inflows are showing signs of returning to the Vietnamese market through ETFs despite the global withdrawal trend due to the US Fed's rate hikes to attract money. The prospect of Vietnamese securities is still considered attractive, especially in the eyes of foreign investors. The recent investment from Hong Kong CSOP FTSE Vietnam 30 ETF pouring capital into the Vietnamese stock market is a clear example. This ETF is expected to invest 100% of its assets in Vietnamese stocks.

CSOP is an investment-focused asset management company in the Chinese market. CSOP currently manages public and private equity funds, as well as provides investment advisory services to Asian and global investors. As of August 31, 2022, CSOP is managing more than 12 billion USD.

According to the CSOP assessment, Vietnam is one of the fastest-growing economies in the world. Thanks to a favourable domestic and global environment, Vietnam's GDP has grown 15 times over the past 25 years. Vietnam is also the only Southeast Asian country to maintain positive economic growth in the last two years despite the COVID-19 pandemic. The International Monetary Fund (IMF) forecasts that Vietnam will be one of the fastest-growing economies in Southeast Asia.

Previously, the third ETF under Dragon Capital, DCVFM VNMidcap ETF, was also officially listed on September 29. This ETF is the first fund to refer to the VNMidcap, a market-capitalisation-weighted index which measures the performance of 70 medium market-capitalisation companies on the HoSE. This is a popular group among many individual investors, especially in the last two years thanks to its good liquidity and high price volatility.

The KIM Growth VNFinselect ET will also be launched soon. This ETF's portfolio includes leading bank and securities company stocks in terms of liquidity and capitalisation.

The appearance of new ETFs promises to bring more choices to investors and at the same time attract capital flows into the market in the future./.