VinaCapital Debuts Vietnam's First Strategic-Beta ETFs on Ho Chi Minh Exchange

VinaCapital has listed Vietnam's first two strategic-beta exchange-traded funds (ETFs) on the Ho Chi Minh Stock Exchange, providing investors with new rules-based tools to access the nation's economic growth. The VinaCapital VNMITECH and VinaCapital VN50 GROWTH funds began trading on June 16, offering what the firm describes as transparent and efficient investment solutions built to international standards.

These index-tracking funds operate on a defined quantitative strategy with transparent rules, periodic reconstitution, and automated rebalancing. Unlike traditional ETFs that replicate broad market indices, these strategic-beta products combine passive management with a data-driven approach. They track custom-built indices based on factors such as value, growth, corporate quality, and volatility, aiming for enhanced returns and improved risk management compared to broad market benchmarks.

The VinaCapital VNMITECH fund, trading under the ticker FUEMITEC, tracks the VNMITECH Index. It focuses on companies in the Industrials, Technology, and Materials sectors, which are considered key drivers of Vietnam’s industrial modernisation and private sector expansion. The fund provides targeted exposure to leading firms in high-tech innovation, automation, advanced manufacturing, strategic materials, and modern logistics. Its investment process includes sector weight caps and liquidity-based weighting adjustments to align with the country's ongoing industrial and digital transformation.

The VinaCapital VN50 GROWTH fund (FUEVN50G) tracks the VN50 Growth Index. This index is designed to capture the performance of 50 promising large- and mid-cap companies selected from the VNAllshare universe. The selection process involves fundamental filters for market capitalisation, liquidity, and corporate governance quality. A key feature is a percentile-based earnings-per-share growth ranking model, which prioritises companies demonstrating strong and sustainable profit momentum. The fund maintains a diversified structure, with a 10 per cent cap per stock and a 40 per cent cap per sector, allowing it to adapt across market cycles.

Brook Taylor, CEO of VinaCapital Fund Management JSC, commented on the launch. “The official listing of the two strategic-beta ETFs marks an important milestone, reflecting the growing maturity of Vietnam’s capital markets,” he said. “We believe that as the economy continues to move toward more sustainable and transparent growth, bringing these funds into trading will enable investors to access the market more efficiently and conveniently. This milestone also underscores VinaCapital’s long-term commitment to supporting the development of Vietnam’s financial markets and the broader economy.”

The two funds have shown encouraging initial performance in the period from the close of their initial public offering on April 3 to May 31. The VinaCapital VNMITECH fund recorded a net asset value (NAV) per unit increase of approximately 3 per cent. Over the same period, the VinaCapital VN50 GROWTH fund posted NAV per unit growth of around 15.7 per cent, outperforming the VN-Index’s 10.7 per cent gain.