At the introductory event, Ban Viet Securities Investment Fund Management Joint Stock Company (VCAM) discussed global ETF development trends, the potential of Vietnam's ETF market, and index-based investment strategies amidst market fluctuations.

A company representative stated that the VNDIVIDEND index, developed and managed by Ho Chi Minh Stock Exchange (HOSE), focuses on businesses with stable financial foundations, strong cash flow generation, and a consistent history of cash dividend payments over many years. The strategy aims to select companies with sustainable operational quality, rather than solely focusing on stocks with high short-term dividend yields.

VCAM's introductory program overview. Photo: VCAM

To be included in the index basket, businesses must meet criteria regarding market capitalization, liquidity, profitability, and cash dividend payment history. These criteria are designed to ensure transparency, investability, and portfolio quality.

VCAM's representative also analyzed the VNDIVIDEND index's resilience and recovery during periods of significant stock market declines.

A key topic of interest at the event was the role of ETFs during volatile markets. According to the company, sharp market corrections often cause many investors to hesitate in deploying capital or attempt to find the market's "bottom". However, stock market history indicates that precisely identifying the market bottom is almost impossible.

"For long-term investors, it is important to choose an appropriate investment strategy, maintain asset accumulation, and adhere to investment discipline in the medium and long term, especially when the market and stocks are undervalued", the representative stated.

A VCAM representative presents the fund's investment strategy. Photo: VCAM

VCAM affirmed that ETFs enable investors to access a diversified stock portfolio through a single transaction, helping to reduce the risk of concentrating on individual stocks and limiting the impact of emotional factors during the investment process.

The event also included a question-and-answer session lasting over 30 minutes. The company received numerous inquiries regarding the following: the subscription process for fund certificates during the offering period, the mechanism for creating and redeeming fund certificates, trading methods after listing, the methodology for constructing the VNDIVIDEND index, company selection criteria, portfolio weighting determination, and the periodic review and rebalancing mechanism.

VNDIVIDEND's profitability performance compared to VNIndex (2018-2025), as compiled by VCAM. Photo: VCAM

VCAM's representative directly addressed the questions and shared insights into the passive investment principles of ETFs and the product development direction for the Vietnamese market. This exchange helped investors gain a clearer understanding of the ETF model and the fund's operational mechanisms.

Following the introductory program, the company will proceed with the initial public offering of fund certificates as planned. According to VCAM, once the offering is complete and the Certificate of Fund Establishment Registration is issued, the fund certificates are expected to be listed on HOSE, facilitating trading for investors in the secondary market.

"VCAM expects this product to diversify investment options in the stock market while providing a passive investment solution for investors pursuing long-term asset accumulation goals", the representative added.

Thien Minh