How to invest in FTSE Vietnam 30 index funds in 2024

Find out how to invest in the FTSE Vietnam 30 index, learn which trading platforms have the lowest fees, and what’s easiest for beginners.
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Updated: May 12, 2023
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It only takes a few minutes to invest in the FTSE Vietnam 30 index. One of the simplest and most popular ways to invest is to buy shares in a Vanguard FTSE Vietnam 30 ETF through an online trading platform.

Where can I invest in the FTSE Vietnam 30 index?

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According to our expert research, Plus500 is the best ETF broker to invest in FTSE Vietnam 30 index funds. 

Both FTSE Vietnam 30 ETFs and FTSE Vietnam 30 CFDs are available to invest in through Plus500 .

Here are three more places to buy the FTSE Vietnam 30, ranked according to their cost, security, and features.

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1
Min. Deposit
$ 100
Best offer
User Score
10
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2
Min. Deposit
$ 10
Best offer
User Score
9.9
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
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3
Min. Deposit
$ 0
Best offer
User Score
9.6
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
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Payment Methods:
Bank Wire, Check, Debit Card, Wire Transfer
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How do I invest in the VNI30 index?

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The easiest way is to sign up to a stock broker, open an investment account, and buy shares in an FTSE Vietnam 30 ETF or CFD. This guide explains how to do it:

Step 1. Sign up to Plus500

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We recommend using Plus500 to invest in FTSE Vietnam 30. Sign up for a brokerage account and deposit some money. You may need to supply a form of photo ID to verify the account.

1
Min. Deposit
$ 100
Best offer
User Score
10
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 2. Decide how to buy FTSE Vietnam 30

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This boils down to choosing between an FTSE Vietnam 30 ETF or CFD. ETFs are generally better suited to investors who want to passively track the FTSE Vietnam 30’s performance. CFDs offer a greater range of trading options: you can use leverage, short the index, or buy and sell it outside of trading hours.

Step 3. Invest in the FTSE Vietnam 30

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Sign into your trading account and search for the FTSE Vietnam 30. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.

Step 4. Monitor your investment

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When you buy a CFD, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.

Your trading account will show the price change in the FTSE Vietnam 30 since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the FTSE Vietnam 30 and close your position, ideally at a profit!

The different ways to invest in the VNI30

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As we mentioned above, there are numerous ways to put your money into the FTSE Vietnam 30. ETFs and CFDs are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.

FTSE Vietnam 30 ETFs

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An ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.

An FTSE Vietnam 30 ETF is one way of investing in the FTSE Vietnam 30. It’s simply an investment fund that mirrors the performance of the FTSE Vietnam 30. When you buy shares in the fund, the value of your investment will rise or fall with the FTSE Vietnam 30 itself. 

ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the FTSE Vietnam 30 index, because you can buy or sell shares in the fund throughout the day.

Examples of popular VNI30 ETFs

  • VanEck Vectors Vietnam ETF (VNM)
  • Dragon Capital Vietnam ETF (DRGV)

FTSE Vietnam 30 index funds

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An index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the FTSE Vietnam 30. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.

However, there are a couple of differences. FTSE Vietnam 30 index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in FTSE Vietnam 30 index funds.

That means an FTSE Vietnam 30 mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.

Examples of popular VNI30 index funds/mutual funds

  • VinaCapital Vietnam Opportunity Fund (VOF)
  • Eastspring Investments Vietnam Equity Fund (EASVNFE)
  • PXP Vietnam Fund (PXPVF)

FTSE Vietnam 30 CFDs

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CFDs (contracts for difference) are a way to speculate on FTSE Vietnam 30 price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the FTSE Vietnam 30 – but it’s separate from it.

As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.

All of this means FTSE Vietnam 30 CFDs offer the potential to outperform a fund that passively tracks the FTSE Vietnam 30’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.

FTSE Vietnam 30 futures

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Futures contracts are agreements to buy or sell the VNI30 at an agreed price on a set date in the future. FTSE Vietnam 30 futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.

Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.

Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the FTSE Vietnam 30 then you might want to short the FTSE Vietnam 30 so that you still make some money if the price falls.

FTSE Vietnam 30 stocks

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Another way to invest in the FTSE Vietnam 30 is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the FTSE Vietnam 30 in order to get broad exposure to its performance.

The most heavily weighted stocks in the FTSE Vietnam 30 tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.

One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.

For the FTSE Vietnam 30 index, the largest stocks you might choose to invest in are:

CompanyIndex weight
Vinhomes JSC (VHM) 11.4%
Vietnam Dairy Products JSC (VNM) 10.5%
Vincom Retail JSC (VRE) 10.2%
Vietcombank (VCB) 9.7%
PetroVietnam Gas JSC (GAS) 8.4%
Masan Group Corp (MSN) 6.4%
Techcombank (TCB) 5.4%
Vietnam Joint Stock Commercial Bank for Industry and Trade (CTG) 4.9%
Vietnam Joint Stock Commercial Bank for Foreign Trade (VCB) 4.8%
No Va Land Investment Group Corp (NVL) 4.7%

The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.

How much does it cost to invest in the FTSE Vietnam 30 index?

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From $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD, or share, plus the fees associated with it.

InstrumentTrading feeManagement fee
Exchange traded funds$0-$5.990-0.2%
Index fund / mutual fund$0-$5.990.1-2%
Individual stock$0-$3None
CFD$0None

*A fee comparison of 3 leading brokers for example purposes

ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.

All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars. 

Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.

Should I invest in the FTSE Vietnam 30 index? 

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Yes, FTSE Vietnam 30 investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It gives you an instantly diverse portfolio with exposure to a broad area of the stock market.

The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The FTSE Vietnam 30 is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.

What are the advantages of investing in the FTSE Vietnam 30 index?

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An index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the FTSE Vietnam 30 index:

  • You’ll get exposure to Vietnam’s economy. Vietnam is one of the fastest-growing economies in the world. Its stock market has performed well in recent years. Investing in the FTSE Vietnam 30 index provides exposure to a range of diverse companies operating in this growing market. 
  • The index included stocks from a diverse range of industries. The FTSE Vietname 30 includes companies operating in several sectors, which reduces the risk of a single industry impacting performance. 
  • Vietnam has a growing middle class. Vietnam has a young and growing middle-class population that is expected to drive economic growth in the future. This could bode well for the index as many companies operate in the consumer goods, financial, and healthcare sectors. 
  • Vietnam’s stock market is still underdeveloped, with growth potential. The FTSE Vietname 30 index offers a unique investment opportunity as the country’s stock market is still young when compared to other regions of the world. This means there is potential for high returns over the long term. 

What are the disadvantages of investing in the FTSE Vietnam 30 index?

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The main risk of investing in the FTSE Vietnam 30 is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of FTSE Vietnam 30 investing.

  • The index is concentrated on a small number of companies. As only 30 companies comprise the index, there is a higher chance of one or two pulling its performance in either direction. This could be risky, especially if a company is struggling. 
  • The FTSE Vietnam 30 is volatile. Similarly to many emerging market indexes, the VN30 is a volatile index, and it’s not uncommon to experience large swings in price. 
Invest in the the FTSE Vietnam 30 Index

FAQs

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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.