ETFs open new opportunities to help investors handle risk
ETFs open new opportunities to help investors handle risk
Opportunities to invest in exchange-traded funds (ETFs) were introduced to investors yesterday by the Ha Noi Stock Exchange and FPT Securities Company.
"ETFs have arisen as an option for many investors due to its ability to spread out risk, ensure transparency, provide diversified portfolios and offer a low transaction cost," noted the exchange's deputy general director, Nguyen Anh Phong.
Meanwhile, FPT Securities Chief Executive Officer Nguyen Diep Tung said that the company would develop new products and improve its overall technological system to support the investors in trading.
"This tool of investment is still new to Vietnamese investors," disclosed the company's head of brokerage, Nguyen Van Dung. He added that ETF certificates were typically purchased mainly by organisations.
However, domestic products, such as ETFs, need to be created to enhance the professional standard of the market. The release of the VN30 Index, the HNX30 Index and a series of sector indexes paved the way for ETFs.
Two Vietnamese ETFs, the VFMVN30 and SSIAMHNX30, are currently simulating the VN30 Index and HNX30 Index.
VFMVN30 was listed on the HCM City Stock Exchange on October 6. However, investors have not shown much interest in it. The certificate plunged to 12.5 per cent as of Thursday, according to data compiled by the Securities Investment newspaper. Its average daily traded volume reached only 156,000 units.
The decline may be the reason for calls from securities watchdogs to hold ETF training sessions for investors.
The SSIAMHNX30, managed by SSI Asset Management, will officially list fund certificates on the Ha Noi Stock Exchange next Monday.
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