July 12, 2014
in More Investments
The Vietnam Fund Management Company (VFM) has launched an exchange-traded fund (ETF) which tracks the VN30 index of the southern exchange.
The ETF VFMVN30, the first of its kind in Vietnam, was granted an initial public offering (IPO) certificate by the State Securities Commission (SSC) on July 4. The fund is managed by VFM and supervised by Standard Chartered Bank (SCB).
The IPO of the fund will be made between July 21 and August 14 and it will then be listed on the Ho Chi Minh Stock Exchange (HOSE).
The ETF VFMVN30 will follow developments of the VN30 index consisting of 30 stocks with the highest market capitalisation and liquidity on HOSE, which account for more than 60 percent of the market’s capitalisation value.
The fund will lay a foundation for the development of open funds in the time to come, thus increasing liquidity in the domestic stock market, said SSC Vice Chairman Nguyen Thanh Long.
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. ETFs experience price changes throughout the day as they are bought and sold. Most ETFs track an index, such as stock index or bond index.
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