The fund is benchmarked to the Market Vectors Vietnam Index. It’s comprised of 28 stocks in eight different sectors and uses a modified market-cap-weighting strategy. Industry sectors with the largest representation inside VNM include financials, energy and basic materials.
Despite turbulent global financial markets, Vietnam’s economy grew 6.5 percent in 2008. Vietnam has been capturing more share of foreign capital investment, which accounts for almost 40 percent of the country’s GDP. The International Monetary Fund has forecast 5 percent investment growth for this year.
VNM’s underlying index may also include non-Vietnamese companies that generate, or are expected to generate, at least 50 percent of their revenues from Vietnam, or that demonstrate a significant or dominant position in the Vietnamese market and are expected to grow.