Focusing solely on the here and now, it is hard to get excited by the Market Vectors Vietnam ETF. (NYSE: VNM). With emerging markets equities popping this year, VNM, the lone exchange-traded fund dedicated to Vietnamese stocks is lagging with a loss of 2.5 percent.
Frontier Vs. Emerging Economy
While Vietnam is officially classified as a frontier market, not an emerging economy, VNM is still lagging the iShares MSCI Frontier 100 ETF (NYSE: FM). FM, which has been pressured by lower oil prices over the past two years, is up 1 percent this year. Lower oil prices should not be much of hindrance to Vietnamese stocks because Vietnam is not a major oil exporter.
Are Positives Ahead?
For the three years ending 2015, VNM only outperformed FM on one occasion, 2014, but the Vietnam ETF could be poised to end that skid. At the very least, tactical investors looking for single-country, satellite-type exposure should be rewarded with VNM in ...
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