Topic: ETF

While global capital is fleeing from stocks and bonds, Vietnam is still attracting strong inflows through exchange-traded funds (ETFs). In June, total inflows from ETFs reached nearly VND1.7 trillion ($72 million), for nearly VND8.4 trillion ($359 million) since the beginning of the year. According to SSI Research, capital from ETFs and active funds coming to Vietnam are now showing signs of shrinking.

Capital flows through exchange-traded funds (ETFs) into Vietnam have reached a net value of $109.3 million since the beginning of June. Analysts said that rising inflation in the US and signs of the US Fed increasing interest rates have resulted in money being withdrawn from stock markets, including in Vietnam, causing ETF flows to slow.

Figures from KIS Securities show that in the week May 30 to June 3, inflows from exchange-traded funds (ETFs) into Southeast Asia reached $145 million and rose the highest for eight years, with Vietnam alone attracting $85 million. The fact that the VND is gaining against other currencies is a positive factor supporting net withdrawals by ETFs.

Data from KIS Securities shows that, in May, ETF (exchange-traded fund) capital in Vietnam’s stock market reached $147.4 million through 12 funds. With S&P Global Ratings having upgraded Vietnam’s long-term national credit rating to “BB+” with a stable outlook, it is expected that ETF capital into its stock market will grow further in the future.