As a foodie, I like
Pho, a
Vietnamese noodle soup that is a popular
street food and cuisine.
As an investor, I like the emerging Vietnamese economy. I actually like it enough to invest in it through the
Market Vectors Vietnam ETF (NYSEARCA:
VNM).
VNM is an
Exchange Traded Fund closely matching before fees and expenses, the price and yield performance of the
Market Vectors Vietnam Index. This index is comprised of mostly publicly traded companies that are domiciled and primarily listed in Vietnam or that generate the majority of their revenues in
Vietnam.
Vietnam has a relatively stable local currency, large
young demographics (median age 29) and competitive labor costs. Inflation is lower compared to its regional neighbors so it will continue to attract foreign investments especially in the growing manufacturing sector from large foreign companies like
Samsung and
Foxconn.
Looking at the multi-year price chart history, VNM seems to be at a low point now and the risk reward for this investment / trade looks good. There are still downside risks due to regional political factors and a potential prolonged slow economic climate due to China's slowing economy. Nonetheless I think this is an investment that will slowly pay dividends while waiting for that recovery growth.
ETF Basic information: (src: Yahoo Finance)
Market CAP:
546M Dividend:
2.75% Annual Report Expense Ratio (net)
0.65%
Year to Date Return (Mkt): -4.42%
1-Year Total Return (Mkt):
-9.81%
3-Year Total Return (Mkt):
4.08%