VanEck Vietnam ETF (BATS:VNM), Trade Ideas

VanEck Vietnam ETF

VanEck Vectors Vietnam ETF

Asia

Economics

Markets

Tech

General

$BTC

AAPL

ADBE

AMZN

GOOG

INTC

MRVL

MSFT

NVDA

ORCL

STLA

TSLA

To gain an edge, this is what you need to know today.



Momo Buying Ahead Of CPI, iPhone 15, And ARM IPO; Auto Worker Strike Likely

Trading Ideas

ETFs

ASHR

EIDO

Signal(s) to enter, add, reduce, exit, hold or change.

GDP

India&#39;s GDP grew by 7.8% in the April - June period vs. 7.7% consensus. This is a very strong growth number and the fastest in a year.

India GDP A Strong 7.8%, China&#39;s Xi Likely To Skip Visit To G-20

globe chart shutter

Equities

Broad U.S. Equity ETFs

Emerging Markets

Eurozone

Emerging Market ETFs

ACWX

iShares MSCI Poland Investable Market Index Fund ETF

EPOL

iShares MSCI Turkey Investable Market Index Fund

July was a positive month for the U.S. stock market, but strong gains were also seen in global equity markets, with some countries posting double-digit monthly returns. Notably, the 1% decline in the dollar in July, marking its second consecutive month of losses, provided a boost to numerous emerging markets heavily reliant on the greenback’s cycle.

July&#39;s Top-Performing Country ETFs: This Nation Led Global Equity Rally, And It Wasn&#39;t China

Natixis Vaughan Nelson Mid Cap ETF

VIETNAM HOLDINGS LTD ORD by Vietnam Holdings, Ltd.

VietNam Holding Ltd

In collaboration with the Vietnamese government, the organizations will join forces on design and technology specifications for smart city projects throughout the country

News

Contracts

IVDA

Iveda Partners With VinaFore For Authorized AI Solutions Provider To Vietnamese Government

<a href="https://www.reuters.com/business/energy/aes-talks-sell-major-coal-fired-power-plant-vietnam-sources-2023-11-17/" title="https://www.reuters.com/business/energy/aes-talks-sell-major-coal-fired-power-plant-vietnam-sources-2023-11-17/">https://www.reuters.com/business/energy/aes-talks-sell-major-coal-fired-power-plant-vietnam-sources-2023-11-17/</a>

Asset Sales

Reuters Reported Earlier, AES In Talks To Sell Major Coal-fired Power Plant In Vietnam

<a href="https://www.reuters.com/technology/intel-shelves-planned-chip-operation-expansion-vietnam-source-2023-11-07/" title="https://www.reuters.com/technology/intel-shelves-planned-chip-operation-expansion-vietnam-source-2023-11-07/">https://www.reuters.com/technology/intel-shelves-planned-chip-operation-expansion-vietnam-source-2023-11-07/</a>

Reuters Reported Late Monday: Intel Dropped Planned Chip Operation Expansion In Vietnam

-Bloomberg Citing White House Statement

Macro Economic Events

U.S. Vietnam Sign Deal On Semiconductor Supply Chains

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2023/09/2023-09-11_08h19_27.png" style="height:369px; width:650px" />
<h3>Auto Worker Strike Likely</h3>
Please&nbsp;<a href="https://thearorareport.com/stock-market-chart-analysis-auto-worker-strike-gm-mc-09112023">click here</a>&nbsp;for a chart of General Motors Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gm#NYSE">GM</a>).
Note the following:
<ul>
<li>The Morning Capsule is about the big picture, not an individual stock.&nbsp;The chart of&nbsp;GM&nbsp;stock is being used to illustrate the point.</li>
<li>The chart shows that&nbsp;GM&nbsp;stock has given up all of its summer rally gains.&nbsp;The reason is a potential strike by United Auto Workers (UAW).</li>
<li>President Biden claims to be the most pro-union president.&nbsp;President Biden has been predicting that UAW will not strike.</li>
<li>In The Arora Report analysis, the probability of a UAW strike is very high.</li>
<li>UAW President Shawn Fain is talking about the possibility of a simultaneous strike against GM, Ford Motor Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>), and Stellantis NV (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stla#NYSE">STLA</a>).</li>
<li>In The Arora Report analysis, if there is a simultaneous strike against all three automakers, it will put Michigan in a recession and will have a major negative impact on the&nbsp;U.S. economy.&nbsp;&nbsp;</li>
<li>The union is especially upset that new plants such as those for batteries are not unionized.</li>
<li>UAW is blaming the Biden administration for giving away billions of dollars of subsidies without demanding wage standards.</li>
<li>All of the foregoing is positive for Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) as Tesla is not unionized.</li>
<li>On August 29, we shared with you:</li>
</ul>
<blockquote>Today, Tesla (TSLA) is turning on a massive NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) cluster consisting of 10,000 H100 GPUs.&nbsp;The cluster will be used to train FSD (Full Self-Driving).&nbsp;Tesla is also spending $1B to build its own Dojo supercomputer.
</blockquote>
<ul>
<li>There is heavy buying in&nbsp;TSLA&nbsp;stock in the early trade as a Wall Street bank highlights Dojo and states that Dojo can&nbsp;add&nbsp;up to $500B in value to Tesla.</li>
<li>The momo crowd&rsquo;s pattern is to buy ahead of events, ignoring the risk. The reason is that the momo crowd believes that every event that is ahead is going to run up the stock market.&nbsp;In the early trade, the momo crowd is aggressively buying stocks ahead of several events.
<ul>
<li>CPI will be released on September 13 at 8:30am ET, followed by PPI on September 14 at 8:30am ET.</li>
<li>The iPhone 15 launch is ahead.&nbsp;Historically, Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) stock runs going into the launch and is sold after the launch.</li>
<li>There is very heavy demand for ARM (ARM) IPO.&nbsp;The&nbsp;IPO&nbsp;is five times oversubscribed.&nbsp;The price is likely to be raised.</li>
<li>Oracle Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/orcl#NYSE">ORCL</a>) reports earnings after the close today.&nbsp;Adobe Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adbe#NASDAQ">ADBE</a>) reports earnings on Thursday after the close.&nbsp;The momo crowd is excited about the&nbsp;AI&nbsp;potential of these two companies.</li>
</ul>
</li>
<li>As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents.&nbsp;Please scroll down to see the protection band.</li>
</ul>
<h3>Japan</h3>
The Japanese currency yen and Japanese bank stocks are surging on a comment by Bank of Japan (BoJ) Governor Kazuo Ueda indicating that Japan could soon move away from negative interest rates.
As a full disclosure, there are positions in the Japanese yen ETF and a Japanese equity ETF in ZYX Allocation Model Portfolio by The Arora Report.
<h3>Vietnam</h3>
President Biden just completed a successful trip to Vietnam as the&nbsp;<a href="https://zyxbuyfeed.thearorareport.com/tag/u/" rel="tag" title="Click to see other posts for U">U</a>.S. tries to peel Vietnam away from China.&nbsp; The two countries are agreeing on cooperating in AI, cloud computing, and semiconductors.&nbsp;Executives from Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Intel Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intc#NASDAQ">INTC</a>), Marvell Technology Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrvl#NASDAQ">MRVL</a>), Boeing Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>), and GlobalFoundries Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gfs#NASDAQ">GFS</a>) attended an important summit.&nbsp;Boeing received a big aircraft order.
Vietnam offers a great opportunity for long term investors.&nbsp;The ETF of choice is&nbsp;VanEck Vietnam ETF&nbsp;(BATS: <a class="ticker" href="https://www.benzinga.com/stock/vnm#BATS">VNM</a>).&nbsp; Buy zones and ratings are in ZYX Emerging by The Arora Report.&nbsp;The Arora Report has continuously covered Vietnam for 16 years.
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Nvidia, Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), Alphabet, Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Tesla, and Apple.
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is &#128274;&nbsp;in the early trade.&nbsp;To see the locked content, <a href="https://thearorareport.com/sub">please click here to start a free trial</a>.
<h3>Gold</h3>
The momo crowd is buying gold in the early trade.&nbsp;Smart money is &#128274;&nbsp;in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is buying oil in the early trade.&nbsp;Smart money is &#128274;&nbsp;in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3>Markets</h3>
Our very, very short-term early stock market indicator is &#128274;.&nbsp;This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider holding &#128274; in cash or Treasury bills or allocated to short-term tactical trades; and short to medium-term hedges of &#128274;, and short term hedges of &#128274;. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp;When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp;High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp;Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls.&nbsp;The Arora Report correctly called the 2008 financial crash, the start of a mega bull market in 2009, the COVID crash, the post-COVID bull market, and the 2022 bear market.&nbsp; Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.

Boeing (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) and Vietnam Airlines announced today the carrier has selected the 737 MAX family to expand its single-aisle fleet, with a commitment to order 50 737-8 airplanes. With enhanced fuel efficiency and
Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and Vietnam Airlines announced today the carrier has selected the 737 MAX family to expand its single-aisle fleet, with a commitment to order 50 737-8 airplanes. With enhanced fuel efficiency and environmental performance, the 737 MAX will provide best-in-class flexibility for&nbsp;Vietnam&#39;s&nbsp;growing aviation market. The commitment was announced during a signing ceremony with President&nbsp;Joe Biden, Secretary of State&nbsp;Antony Blinken, White House officials and Vietnamese government leaders on&nbsp;Monday, Sept. 11.

Vietnam Airlines Taps 50 Boeing 737 MAX Airplanes to Grow its Fleet

Signal(s) to enter, add, reduce, exit, hold or change.
<h3>GDP</h3>
India&#39;s GDP grew by 7.8% in the April - June period vs. 7.7% consensus.&nbsp;This is a very strong growth number and the fastest in a year.
<h3>India Vs. China</h3>
India is ascendant.&nbsp; As a comparison, we previously shared with you in the Morning Capsule dated July 17 that China&#39;s GDP grew by 6.3% year-over-year vs. 7.1% consensus.&nbsp; In China&nbsp;the growth was slower than expected.
The ETF&#39;s of choice are&nbsp;iShares China Large-Cap ETF (ARCA: FXI) and&nbsp;Xtrackers Hvst CSI 300 China A-Shs ETF&nbsp;(ARCA: ASHR).
<h3>G-20</h3>
The G-20 summit is in India next week.&nbsp; G-20 represents the world&#39;s 20 largest economies.&nbsp;President Biden is attending.&nbsp;There was hope that Biden and China&#39;s President Xi would meet in India.&nbsp; Now, there are reports that Xi is likely to skip the summit.&nbsp; For the longest period, China was the fastest growing economy.&nbsp;Now, India is eclipsing China.&nbsp;There is speculation that the reason behind Xi skipping the meeting is increasing rivalry between India and China.
<h3>Supply Chain</h3>
Corporations are rapidly shifting supply chain out of China.&nbsp;India is a beneficiary.&nbsp;Other beneficiaries are Vietnam, Indonesia, Thailand, and Malaysia.
The ETF&#39;s of choice are&nbsp;VanEck Vietnam ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/vnm#BATS">VNM</a>),&nbsp;iShares MSCI Indonesia ETF (ARCA: EIDO),&nbsp;Ishares Msci Thailand Etf (ARCA: THD), and&nbsp;iShares MSCI Malaysia ETF (ARCA: EWM).
<h3>Analysis</h3>
India is suitable for both strategic and tactical positions.&nbsp;India is the best growth story among large economies in the world.
India&#39;s long term future is bright, but in the short term, the market is technically overbought and valuations are expensive.
<h3>ETF</h3>
The ETF of choice is WisdomTree India Earnings ETF (ARCA: EPI).
<h3>Zones</h3>
The buy zone is &#128274;.&nbsp;To see the locked content, please click here to start a free trial.
The short term rating is &#128274;.
The medium term rating is &#128274;.
The long term rating is a &#128274;.
<h4>What To Do Now</h4>
Those in India ETF&nbsp;EPI&nbsp;may consider continuing to hold.&nbsp;Those not in&nbsp;EPI&nbsp;may consider following the parameters given above.
The Arora Report is known for its accurate calls.&nbsp;The Arora Report correctly called the 2008 financial crash, the start of a mega bull market in 2009, the COVID crash, the post-COVID bull market, and the 2022 bear market.&nbsp;Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>. 
This content is for informational purposes only and is not intended to be investing advice.

India GDP A Strong 7.8%, China's Xi Likely To Skip Visit To G-20

<a href="https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge" title="https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge">https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge</a>
SGI, which supplies magnets to Vietnamese EV maker VinFast&nbsp;VFS.O&nbsp;and Korea&#39;s Hyundai Motor&nbsp;005380.KS, told Reuters it is investing $80 million in its new Vietnam factory with production starting in 2024.
The plant would nearly double the company&#39;s current output of 3,000 tons a year from factories in South Korea and China.
SGI described the investment as part of &quot;countermeasures&quot; against possible Chinese trade restrictions.
&quot;China&#39;s policy on control of rare earths-related raw materials and technology is being strengthened, resulting in supply uncertainty,&quot; SGI said.
It said it sources most of its rare earths from China but is seeking alternative sources in Vietnam and Australia and plans to develop a processing facility in Vietnam.

Global

Earlier Reported, SGI, Which Supplies Magnets To Vietnamese EV Maker VinFast And Korea's Hyundai Motor, Told Reuters It Is Investing $80M In Its New Vietnam Factory With Production Starting In 2024

<a href="https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge" title="https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge">https://www.nasdaq.com/articles/exclusive-rare-earths-magnet-firms-turn-to-vietnam-in-china-hedge</a>
&nbsp;
Korean and Chinese magnet firms, including an Apple supplier, are set to open factories in Vietnam, according to documents and people familiar with the plans, amid a push to diversify supply chains away from China and defend against Sino-U.S. tension.
&nbsp;
South Korea&#39;s Star Group Industrial (SGI) and China&#39;s Baotou INST Magnetic would join companies in sectors as varied as electronics and automobiles in shifting assembly lines against a backdrop of increasing trade restrictions, with clients even requesting the move, the people said.
&nbsp;
China is dominant in magnets and the rare earth metals they are made from. The magnets are central to the manufacturing of such products as electric vehicles, wind turbines, weapons and smartphones, making the sector strategically important. Even so, there has been only limited effort to challenge China&#39;s lead.
&nbsp;
Neighbouring Vietnam, however, has untapped rare earth deposits second only to China&#39;s, as well as a fledgling processing industry, giving the country the potential to be a much bigger competitor, industry insiders said.
Still, Vietnam produces just 1% of the world&#39;s magnets, showed Adamas Intelligence data cited in a U.S. Department of Energy report, compared with China&#39;s 92%.
&nbsp;
Moreover, some Chinese factories can produce 10 times as many magnets as SGI&#39;s project, and China dominates the mining and processing of the ores.
&nbsp;
Nevertheless, Vietnam&#39;s rise is significant.
&nbsp;
Moreover, U.S. officials have signalled growing interest in Vietnam&#39;s rare earths potential amid discussion to upgrade bilateral ties this year, and South Korea signed a deal with Vietnam in June to boost its supply chain of critical minerals.
&nbsp;
Magnet makers are also drawn to Vietnam by low labour costs and market access afforded by multiple free-trade deals. They also want to move closer to Vietnam-based clients, such as automakers and electronics firms, which are increasingly wary of over-reliance on Chinese supplies as relations worsen between Washington and Beijing, industry insiders said.
&nbsp;
Vietnam is the only country beyond China with all stages of the magnet supply chain, from mining rare earths to downstream production, said a Vietnam-based industry consultant, who was not authorised to speak to media so declined to be identified.
&nbsp;
The government plans a vast expansion of rare earths production by the end of the decade and is boosting refining capacity, which the U.S. energy department estimated accounts for 3% of the global share.
However, &quot;anyone who is trying to build from scratch a mine-to-magnet supply chain is going to face a lot of challenges,&quot; said David Merriman of Project Blue.

Market Vectors Rare Earth/Strategic Metals Etf

REMX

'Rare Earths Magnet Firms Turn To Vietnam In China Hedge' - Nasdaq

July was a positive month for the U.S. stock market, but strong gains were also seen in global equity markets, with some countries posting double-digit monthly returns. Notably, the 1% decline in the dollar in July, marking its second consecutive month of losses, provided a boost to numerous emerging markets heavily reliant on the greenback&rsquo;s cycle. Additionally, the diminishing fears of a global recession contributed to a favorable market sentiment, rekindling the <a href="https://www.benzinga.com/news/large-cap/23/07/33220411/cash-in-on-the-crashing-dollar-5-stocks-and-etfs-ready-to-soar-from-the-greenbacks-downfall">market&rsquo;s appetite for global equities. </a>
However, some country-specific factors, such as changes in economic policies, played a crucial role in the variations of performance among country exchange traded funds (ETFs) in July.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has consistently outperformed the iShares MSCI All Country World Index Ex-US ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACWX#NYSE">ACWX</a>) in 2023, boasting returns of 18.7% compared to 11.7%. Nonetheless, in July, U.S. stocks slightly underperformed global equities (2.8% vs. 3.4%).
Which nations stood out in July with impressive performance in their stock markets? Let&rsquo;s take a look at data from Koyfin to find out!
<h2 class="wp-block-heading">Country ETFs: Top Gainers in July</h2>
<ol>
<li>Poland &ndash; iShares MSCI Poland ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPOL#NYSE">EPOL</a>)</li>
</ol>
<ul>
<li>Developments in Poland: The Polish zloty (PLN) reclaimed its mid-February 2022 value, effectively erasing all Ukraine conflict-related losses. Poland&rsquo;s stock market reaches an 18-month high, indicating robust investor sentiment, inflation eased further and the country&rsquo;s unemployment rate fell to the lowest since October 2019.</li>
<li>Performance month to date: 9.4%</li>
<li>ETF monthly flows: $25.8 million</li>
<li>Performance year to date: 33.6%</li>
</ul>
<ol>
<li>China &ndash; SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>)</li>
</ol>
<ul>
<li>Developments in China: Chinese authorities committed to bolster the economy through increased policy support, including measures to lower mortgage rates to prop up the sluggish domestic real estate sector.</li>
<li>Performance month to date: 10%</li>
<li>ETF monthly flows: ($134 million)</li>
<li>Performance year to date: 22.1%</li>
</ul>
<ol>
<li>South Africa &ndash; iShares MSCI South Africa ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EZA#NYSE">EZA</a>)</li>
</ol>
<ul>
<li>Developments in South Africa: Amid the rising momentum of commodities in July, the stock market of commodity-rich South Africa reaped significant gains, and the South African rand also enjoyed a positive upswing.</li>
<li>Performance month to date: 11.7%</li>
<li>ETF monthly flows: ($8.1 million)</li>
<li>Performance year to date: 2%</li>
</ul>
<ol>
<li>Vietnam &ndash; VanEck Vietnam ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNM#NYSE">VNM</a>)</li>
</ol>
<ul>
<li>Developments in Vietnam: Vietnam continued to attract foreign direct investment, which totaled $11.58 billion in the first seven months of 2023. The country&rsquo;s tourist sector rebounded strongly from pandemic-related restrictions, with international tourists growing 194.6% year-on-year to 1.04 million in July 2023.</li>
<li>Performance month to date: 13.07%</li>
<li>ETF monthly flows: $14.7 million</li>
<li>Performance year to date: 0.8%</li>
</ul>
<ol>
<li>Turkey &ndash; iShares MSCI Turkey (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TUR#NYSE">TUR</a>)</li>
</ol>
<ul>
<li>Developments in Turkey: After President Recep&nbsp;Tayyip Erdogan&lsquo;s victory in the June elections, the newly announced economic team has initiated a significant shift in the country&rsquo;s economic policy. The Central Bank of Turkey raised interest rates by 900 basis points in the last two meetings, signaling a bold reversal from its previous ultra-loose and unorthodox approach.</li>
<li>Performance month to date: 17%</li>
<li>ETF monthly flows: ($23.3 million)</li>
<li>Performance year to date: -10.3%</li>
</ul>
Read now: <a href="https://www.benzinga.com/markets/equities/23/07/33471902/rising-stars-falling-trends-julys-industry-etf-winners-and-losers">Rising Stars, Falling Trends: July&rsquo;s Industry ETF Winners and Losers</a>
Chart: Best Performing Country ETFs In July
<img alt="" class="wp-image-78343" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/31162231/TUR_2023-07-31_22-21-46_af0cc-1024x822.png" style="height:822px; width:1024px" />
Photo: Shutterstock

July's Top-Performing Country ETFs: This Nation Led Global Equity Rally, And It Wasn't China

<a href="https://www.bloomberg.com/news/articles/2023-03-01/citigroup-clients-are-shifting-supply-chains-away-from-china?utm_source=google&amp;utm_medium=bd&amp;cmpId=google&amp;sref=y3YMCJ4e" title="https://www.bloomberg.com/news/articles/2023-03-01/citigroup-clients-are-shifting-supply-chains-away-from-china?utm_source=google&amp;utm_medium=bd&amp;cmpId=google&amp;sref=y3YMCJ4e">https://www.bloomberg.com/news/articles/2023-03-01/citigroup-clients-are-shifting-supply-chains-away-from-china?utm_source=google&amp;utm_medium=bd&amp;cmpId=google&amp;sref=y3YMCJ4e</a>

Bloomberg Reported Earlier: Citigroup Clients Are Shifting Supply Chains Away From China To Mexico, Vietnam, Other Locations

<a href="https://www.reuters.com/technology/netflix-making-preparations-open-vietnam-office-sources-2023-02-24/" title="https://www.reuters.com/technology/netflix-making-preparations-open-vietnam-office-sources-2023-02-24/">https://www.reuters.com/technology/netflix-making-preparations-open-vietnam-office-sources-2023-02-24/</a>

NFLX

Reuters Reported Earlier: Netflix Is Making Preparations To Open An Office In Vietnam

-Reuters
<a href="https://www.reuters.com/world/asia-pacific/vietnam-holds-first-international-arms-expo-hanoi-2022-12-08/" title="https://www.reuters.com/world/asia-pacific/vietnam-holds-first-international-arms-expo-hanoi-2022-12-08/">https://www.reuters.com/world/asia-pacific/vietnam-holds-first-international-arms-expo-hanoi-2022-12-08/</a>

Market Vectors Russia ETF Trust Shares of Beneficial Interest

U.S., Russia Defense Firms Aim to Sell Arms to Vietnam at Hanoi Fair

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened?&nbsp;On July 20,&nbsp;2000, Vietnam opened its first stock exchange.
Where The Market Was: The Dow Jones Industrial Average closed the day at 10,843.87 and the S&amp;P 500 traded at 1,495.57.
What Else Was Going On In The World?&nbsp;In 2000, Hillary Clinton was elected to the U.S. Senate in New York. &ldquo;How The Grinch Stole Christmas&rdquo; was the highest-grossing movie in the U.S. The average price of a new house was $134,150.
Vietnam Goes Public: Twenty-five years after the fall of Saigon, Vietnam inaugurated the Ho Chi Minh City Securities Trading Center on July 20, 2000. Trading officially began eight days later. At the time, the Vietnam exchange listed only two stocks: Refrigeration Electrical Engineering Joint Stock Corporation and Telecommunication Material Joint Stock Company.
Foreign investors were <a href="http://factsanddetails.com/southeast-asia/Vietnam/sub5_9g/entry-3476.html">initially limited</a> to just 20%&nbsp;ownership of Vietnamese equities, but that limit was lifted to 30%&nbsp;just three years later and to 49%&nbsp;in 2005. In August 2007, the exchange was updated and renamed the Ho Chi Minh Stock Exchange.
The exchange uses an automated order matching system with a capacity of just 300,000 orders per day. Daily stock price fluctuations are capped at 7%&nbsp;above or below the previous day&rsquo;s closing price.

Education

This Day In Market History: Vietnam Stock Exchange Opens

Politics

U.S. Drops Switzerland, Vietnam Foreign Exchange Manipulator Designation

The VanEck Vectors Vietnam ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vnm#NYSE">VNM</a>) has shed 5.13% over the past month, whittling its year-to-date gain to just 6.78% while prompting some market observers to say stocks in the Southeast Asian economy are inexpensive.
While some traders may be searching for Vietnamese value, a familiar issue is rearing its head: the lack of depth in the country&#39;s equity market. As in, there just aren&#39;t many publicly traded companies there. VNM tracks the MVIS Vietnam Index and holds 25 stocks and that&#39;s with a fairly liberal index qualifier.
VNM&#39;s index &ldquo;includes securities of publicly traded companies that are incorporated in Vietnam or that are incorporated outside of Vietnam but have at least 50% of their revenues/related assets in Vietnam,&rdquo; <a href="https://www.vaneck.com/etf/equity/vnm/overview/">according to VanEck</a>.
<h3>Why It&#39;s Important</h3>
&ldquo;Trading volume in Vietnam&rsquo;s stock market remains tiny compared with other Southeast Asian countries, even for the nation&rsquo;s large caps,&rdquo; <a href="https://www.bloomberg.com//news/articles/2019-12-03/vietnam-stocks-get-cheaper-but-there-aren-t-many-to-trade?srnd=markets-vp">according to Bloomberg</a>.
That can make stock picking tricky, underscoring the allure of VNM&#39;s basket approach. The $439.4 million exchange traded fund allocates over 60% of its weight to its top 10 holdings, an unsurprising level of concentration given the small size of the Vietnamese equity market. The ETF&#39;s top three holdings combine for more than 22% of its roster.
Adding to the allure of VNM is that some professional investors is that many international investors hold Vietnamese stocks for long time frames, contributing to the market&#39;s tight liquidity and above-average trading cost, notes Bloomberg.
VNM allocates almost 41% of its weight to the real estate and consumer staples sectors, groups that do offer some liquidity in Vietnam because they&#39;re chock full of large-cap companies.
<h3>What&#39;s Next</h3>
Vietnam is <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/07/14147835/vietnam-and-its-etf-look-to-venture-into-new-territory">angling for a promotion to the</a> MSCI Emerging Markets Index and as such, policymakers there are taking steps to liberalize financial markets. Speeding up that process could be an assist to equity prices.
&ldquo;Hopes that privatization will help market liquidity are also dimming,&rdquo; according to Bloomberg. &ldquo;While the Vietnamese government has made a push to accelerate the revamp of rules for state-owned enterprises, the privatization process has been slowing.&rdquo;
However, investors seem encouraged as highlighted by year-to-date inflows of nearly $102 million to VNM.
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Long Ideas

Slump Has Vietnam ETF Look Inexpensive

The VanEck Vectors Vietnam ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vnm#NYSE">VNM</a>) is up 12% this year, trailing the iShares MSCI Frontier 100 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fm#NYSE">FM</a>) in which Vietnam is one of the largest country weights by about 370 basis points.
<h3>What Happened</h3>
VNM&#39;s decent though not spectacular performance this year could, in the future, be boosted by Vietnam&#39;s long-running quest to shed its frontier market status and become an emerging market, meaning it would be eligible for inclusion in the widely followed MSCI Emerging Markets Index.
&ldquo;Recently, Vietnam has attracted global investor interest as a potential beneficiary of the ongoing trade war between the U.S. and China, but investors have also taken notice of the country&rsquo;s attractive long-term fundamental characteristics,&rdquo; said VanEck <a href="https://www.vaneck.com/blogs/etfs/vietnam-frontier-market-on-the-cusp">in a recent note</a>.
<h3>Why It&#39;s Important</h3>
When it comes to VNM and Vietnam, there are some fun, but important facts to consider. The equity market there is small as highlighted by VNM&#39;s roster of just 27 stocks. However, the nation is growing rapidly and its demographics are more favorable than larger Asian economies such as China and Japan. About 70% of Vietnam&#39;s population is 25 years old or younger.
&ldquo;First, Vietnam&rsquo;s growth rate has increased since the 2008 global financial crisis,&rdquo; according to VanEck. &ldquo;For the last 10 years, Vietnam&rsquo;s annual GDP growth rate has exceeded 6%, compared to an average of 5% for emerging market countries. In 2018, Vietnam&rsquo;s GDP growth is estimated to have exceeded China&rsquo;s by around 50 basis points (7.08% in Vietnam vs. 6.57% in China).Vietnam&rsquo;s economic growth may be linked to the country&rsquo;s abundant natural resources and a strong manufacturing base, which has led to a robust export-based economy that is also supported by healthy domestic demand.&rdquo;
VNM is levered to Vietnam&#39;s consumer story as nearly 24% of its weight is allocated to the two consumer sectors.
<h3>What&#39;s Next</h3>
What&#39;s next is the continuing effort to graduate to emerging markets status, a promotion that if realize would send billions of dollars into Vietnamese equities.
&ldquo;Vietnam is taking gradual steps to liberalize its markets, while seeking to avoid the negative impacts of capital flight,&rdquo; according to VanEck. &ldquo;Hot money is a real issue for frontier and emerging market economies, and the negative repercussions, including volatility, may have long lasting effects on the local economy. Index inclusion, if and when it comes, may probably occur at a measured pace, mirroring the approach that index providers are taking for onshore Chinese equities and bonds.&rdquo;
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Vietnam And Its ETF Look To Venture Into New Territory

Among exchange traded funds tracking equities in developing economies, the VanEck Vectors Vietnam ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vnm#NYSE">VNM</a>) has been a steady hand.
VNM, the lone U.S.-listed ETF dedicated to Vietnamese stocks, is up almost 10 percent and the fund is modestly higher over the past month, sharply outperforming the MSCI Emerging Markets Index over those periods.
<h3>What Happened</h3>
For now, Vietnam is classified as a frontier market, and on that basis, VNM is lagging the MSCI Frontier Markets 100 Index, but that&#39;s not the fund&#39;s biggest issue. The health of Vietnamese banks, an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/05/13711726/vietnam-earns-outlook-upgrade-from-fitch">often raised point over</a> VNM&#39;s almost 10 years on the market, is again being discussed.
Put simply, Vietnamese banks want pay dividends, but how far they can take that plan to reward shareholders is up for debate because some of the country&#39;s largest state-sponsored financial institutions have massive capital needs.
&ldquo;A plan to allow large Vietnamese state-owned commercial banks to pay dividends in shares or retain dividends will help them to accumulate capital and meet regulatory minimum capital thresholds,&rdquo; said Fitch Ratings <a href="https://www.fitchratings.com/site/pr/10077707">in a note out Thursday</a>. &ldquo;However, the positive effect is likely to be limited relative to the large capital needs state-owned banks are facing amidst rapid balance sheet expansion, underreporting of problem loans and the impending Basel II implementation at the beginning of 2020.&rdquo;
<h3>Why It&#39;s Important</h3>
Vietnam is not yet a dividend mecca on par with China or some other developing economies in Asia. VNM reflects as much with a trailing 12-month dividend yield of just 0.86 percent. That also implies a significant opportunity for dividend growth, a trend Vietnamese banks may be seeking to establish.
The dividend effort and its still pending approval are relevant to investors considering VNM because the fund devotes 12.50 of its weight to the financial services sector, making that its second-largest sector allocation.
&ldquo;The plan would still need to be approved by the National Assembly - Vietnam&#39;s legislative body - and would enable state-owned banks to follow a practice already in place for their private counterparts,&rdquo; according to Fitch.
<h3>What&#39;s Next</h3>
A benefit to VNM is that its largest bank holdings are not among the state-owned institutions that need the most capital. What could bolster all of the country&#39;s banks is increased foreign ownership limits.
&ldquo;The lack of depth in the local capital markets and foreign ownership limits continue to constrain banks&#39; ability to raise common equity, which Fitch views as the best form of loss-absorbing capital,&rdquo; said Fitch. &ldquo;Vietnam maintains a 30% blanket foreign-ownership limit for banks and 20% limit for a foreign investor deemed to have a strategic interest.&rdquo;
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Banks Have Some Things To Work Out Before Helping The Vietnam ETF

With international trade tensions running higher, Vietnamese equities are getting caught in the downdraft. The VanEck Vectors Vietnam ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vnm#NYSE">VNM</a>), the lone Vietnam exchange traded fund listed in the U.S., is down about 5 percent over the past month.
<h3>What Happened</h3>
While VNM is struggling against the backdrop of international headline risk, there is some good news for the fast-growing Vietnamese economy. Fitch Ratings recently upgraded its outlook on the country&#39;s sovereign debt rating from Stable to&nbsp;Positive. The ratings agency <a href="https://www.fitchratings.com/site/pr/10074896">reaffirmed a BB</a> sovereign debt rating on Vietnam.
&ldquo;The revision of Vietnam&#39;s Outlook to Positive from Stable reflects an improving track record of economic management, which is evident in strengthening external buffers from persistent current account surpluses, falling government debt levels, high economic growth rates and stable inflation,&rdquo; <a href="https://www.fitchratings.com/site/pr/10074896">according to&nbsp;Fitch Ratings</a>.
<h3>Why It&#39;s Important</h3>
Vietnam is classified as a frontier market and is the second-largest geographic weight in the MSCI Frontier Markets 100 Index. The country&#39;s BB credit rating is on par with or, in some cases, better than frontier markets. The country has eyes on earning a promotion to emerging <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/04/11473918/the-quiet-rise-of-the-vietnam-etf">markets status and joining the</a> widely followed MSCI Emerging Markets Index, something that would likely boost VNM.
Vietnamese policymakers are looking to stabilize the local economy to bolster foreign investment and potentially notch a higher credit rating.
&ldquo;The authorities are maintaining their policy focus on macroeconomic stability. GDP growth improved to 7.1% in 2018 from 6.8% in 2017 while inflation remained stable at 3.5%, within the National Assembly&#39;s target of below 4%,&rdquo; Fitch said.
&ldquo;Growth remained supported by strong foreign direct investment (FDI) into the manufacturing sector as well as expansion in the services and agriculture sectors.&rdquo;
<h3>What&#39;s Next</h3>
The $413.1-million VNM holds 26 stocks and is slightly beating the MSCI Frontier Markets 100 Index over the past 12 months. VNM allocates a combined 42.5&nbsp;percent <a href="https://www.vaneck.com/etf/equity/vnm/overview/">of its weight</a> to the real estate and financial services sectors.
&ldquo;Importantly, Vietnam&#39;s external liquidity ratio (foreign-exchange reserves relative to external debt service obligations due in the coming year) remains well above the current and historic medians for the &#39;BB&#39; sovereign rating category, in part reflecting modest debt repayments associated with the concessional nature of its outstanding debt,&rdquo; according to Fitch.
&ldquo;However, with Vietnam&#39;s recent graduation from eligibility for loans from the International Development Association, its funding costs are likely to increase over time.&rdquo;
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Analyst Color

Upgrades

Analyst Ratings

Vietnam Earns Outlook Upgrade From Fitch

On Wednesday, just two exchange traded funds hit 52-week highs. The VanEck Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>), the only ETF trading in the U.S. dedicated to Vietnamese stocks, was one of the two.&nbsp;
With Wednesday&#39;s gain, VNM is up 14 percent this year. That is far better than the MSCI Emerging Markets Index. VNM&#39;s year-to-date gain is more than double that of the MSCI Frontier Markets 100 Index, the index in which Vietnam is the second-largest country weight at 18.12 percent.
VNM follows the MVIS Vietnam Index, &ldquo;which is comprised of securities of publicly traded companies that are incorporated in Vietnam or that are incorporated outside of Vietnam but have at least 50 percent of their revenues/related assets in Vietnam,&rdquo; <a href="https://www.vaneck.com/etf/equity/vnm/overview/">according to VanEck</a>.
<h3>
	Searching For Future Growth</h3>
Vietnam has been one of the faster-growing Southeast Asian economies, but the government is looking to turn economic growth toward the private sector.
&ldquo;We will try to put in place the most favorable policies and create the most favorable environment so that by 2020, we will have in operation over 1 million businesses, accounting for 50 percent of Vietnam&rsquo;s GDP, up from 43 percent at present,&rdquo; Prime Minister Nguyen Xuan Phuc <a href="https://e.vnexpress.net/news/business/economy/vietnam-pushes-private-sector-development-to-boost-growth-3728632.html">recently said.</a>
VNM is already highly levered to the Vietnamese consumer. The ETF devotes 30 percent of its combined weight to the consumer staples and discretionary sectors.
&ldquo;Vietnam&rsquo;s export-driven economy grew 6.8 per cent last year, one of the strongest showings in Southeast Asia,&rdquo; <a href="https://e.vnexpress.net/news/business/economy/vietnam-pushes-private-sector-development-to-boost-growth-3728632.html">according to VN Express</a>.
<h3>
	Small Companies</h3>
None of VNM&#39;s holdings have market values of over $5 billion and all are considered mid-caps or small-caps. The weighted average market value of VNM&#39;s holdings is $4 billion.
VNM&#39;s three-year standard deviation of 16.93 percent is more than 500 basis points above the comparable metric on the MSCI Frontier Markets 100 Index. That also means VNM is less volatile than the equivalent Indonesia ETFs, a market Vietnam is often measured against.
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VNM has cleared the 50-DMA and is in a recovery phase. The January 6-month calendar range high sits just above the current price at 13.19.