What Is the VanEck Vietnam ETF (VNM)?
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The VanEck Vietnam ETF (VNM) is a U.S.-listed exchange-traded fund designed to provide investors with exposure to the Vietnamese equity market. Rather than investing directly in individual Vietnamese stocks, VNM allows investors to gain access to a basket of companies that are locally incorporated in Vietnam through a single ETF. The fund seeks to replicate, before fees and expenses, the performance of the MarketVector Vietnam Local Index.
Vietnam has emerged as one of Southeast Asia’s fast-developing economies, supported by manufacturing growth, rising domestic consumption, and increasing foreign investment. VNM is designed for investors who want focused exposure to this specific country rather than a broad emerging markets fund.
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How the MarketVector Vietnam Local Index Works
Visit official VNM ETF website to check VNM's Holdings!
VNM tracks the MarketVector Vietnam Local Index, which is composed of publicly traded companies that are locally incorporated in Vietnam. This focus helps ensure that the ETF reflects the performance of businesses closely tied to the domestic Vietnamese economy, rather than offshore-listed or foreign-domiciled firms.
The index includes companies from a range of sectors such as financial services, consumer goods, industrials, real estate, and energy. As a result, VNM’s performance is influenced by factors like domestic economic growth, government policy, currency movements, and global demand for Vietnamese exports. Changes in local market conditions can have a direct impact on the ETF.
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Why Investors Look at Vietnam-Focused ETFs
Country-specific ETFs like VNM are often used by investors seeking targeted exposure to emerging markets with long-term growth potential. Vietnam’s economy has benefited from demographic trends, expanding manufacturing capacity, and its role in global supply chains. These structural factors make Vietnam an area of interest for investors looking beyond developed markets.
At the same time, investing in a single-country ETF involves unique risks. Market liquidity, regulatory changes, and geopolitical factors can influence performance. VNM provides diversification across multiple Vietnamese companies, but it remains sensitive to developments within Vietnam’s economy and financial markets.
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Who May Consider the VNM ETF
VNM may be suitable for investors who want focused exposure to Vietnam as part of a diversified global portfolio. It can be used to complement broader emerging market ETFs or to express a specific view on Vietnam’s economic development. Investors interested in frontier or early-stage emerging markets may find VNM aligns with their long-term investment themes.
However, VNM is not a diversified global fund, and its performance can be more volatile than broad market ETFs. Understanding the country-specific nature of the fund and its underlying index is important before considering it within an investment strategy.
*The information in this article is provided for informational purposes only. All investment decisions and results are solely the responsibility of the investor.

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