VanEck Vietnam ETF

VNM

Market cap $633M

On Oct 10, 2025, Wall Street saw about $2 trillion in market value wiped out. However, ETFs like SIVR, TAIL, URA, PZA, and VNM held steady.

Vietnam's footwear exports to the United States plunged 27% in September to $611 million, marking the steepest decline among all sectors following the implementation of tariffs by the U.S. government, according to customs data released Monday.

The VanEck Vietnam ETF remains a "Buy," with 15% more upside expected before the current bull run pauses. VNM benefits from strong momentum, a diversified portfolio across styles and caps, and a reasonable 16.5x P/E valuation. Risks include portfolio concentration, high volatility, and heavy real estate exposure, making VNM best suited as a speculative satellite position.

The Vietnam trade deal removes major tariff threats, providing clarity for U.S. companies like Nike, Inc., but the positive impact is already priced in. Nike's tariff-related cost reduction is meaningful, but with forward valuations peaking, I rate the stock a Hold for now. Vietnam's economy benefits from the deal, but the VanEck Vietnam ETF's limited manufacturing exposure means the news isn't a strong buy catalyst.

President Trump's Vietnam "trade deal" raises tariffs to 20%, doubling costs for U.S. importers and potentially hurting demand for Vietnamese exports. VNM ETF remains heavily weighted toward domestic sectors like Financials and Real Estate, which won't directly benefit from the trade deal. Higher tariffs may actually be a headwind for Vietnam's economy, reducing the ETF's appeal versus alternatives like China.

Steven Quattry, Morgan Stanley Investment Management says a number of emerging markets are undergoing structural reforms, hence attracting foreign capital.

After a difficult 2024, VNM ETF has surged by 14% YTD, outperforming its global and Asian EM peers,. Recent infrastructure improvements and regulatory changes are attracting foreign institutional interest, with a possible EM upgrade in September expected to drive even more interest. Risks remain due to Vietnam's export dependence and looming US tariff threats, which could significantly impact GDP and market sentiment.

On this week's episode of ETF Prime, host Nate Geraci sat down with Roxanna Islam, head of sector & industry research at VettaFi. She offers insights on how the recent tariffs announcement could impact ETFs.

European stocks are strong in 2025, but the VanEck Vietnam ETF stands out with an 8% gain, prompting an upgrade to a buy. VNM tracks the MarketVector Vietnam Local Index and offers diversified exposure with a compelling valuation and a price-to-earnings ratio under 12. VNM's sector breakdown, with a heavy real estate weighting and zero tech exposure, has driven its recent outperformance.

VCVOF has historically outperformed the VNM ETF, despite liquidity issues and a widening discount to NAV, making it a compelling investment for long-term exposure. Vietnam's strong GDP outlook, improved economic stability, and attractive stock market valuations suggest significant growth potential for 2025. VNM ETF offers better liquidity and lower fees, but actively managed CEFs like VCVOF can add value in less efficient markets through strategic investments.