CGS-CIMB Securities (CGS-CIMB), an integrated financial services provider in Asia, has raised about S$35 million ($25.8 million) for its first Vietnam-focused ETF — CGS Fullgoal Vietnam 30 Sector Cap ETF — launched Friday on Singapore Exchange (SGX).
The ETF, which comprises the largest and most tradable companies listed on Vietnam’s Ho Chi Minh Stock Exchange (HOSE), set a record for the highest assets under management (AUM) raised for an ETF at the point of listing on SGX.
CGS Fullgoal Vietnam 30 Sector Cap mirrors the performance of the SGX iEdge Vietnam 30 Sector Cap, which is overweight on sectors such as Real Estate, Financials, and Consumer Staples, including companies like Vinhomes, Hoa Phat Group, and SSI Securities Corporation.
The ETF offers dual currency trading in US Dollars and Singapore Dollars and is weighed based on free float market capitalization, with considerations for foreign-ownership limits.
“As its Investment Manager and Broker, CGS-CIMB aims to empower investors seeking higher and stable returns in Vietnam with enhanced access to financial opportunities and comprehensive market insights,” said Carol Fong, Group CEO of CGS-CIMB Securities.
Fong expressed pride in being part of Vietnam’s transformational journey and highlighted the unparalleled investment opportunity into one of Asia’s fastest-growing markets.
Vietnam has garnered significant interest from investors worldwide due to its economic growth potential. The countr’s digital economy is anticipated to witness a 28% annual increase in gross merchandise value and forecast to hit $50 billion by 2025.
Chen Ge, CEO of Fullgoal Fund and chairman of Fullgoal Asset Management (HK) Ltd, the investment advisor for CGS Fullgoal Vietnam 3.0 Sector Cap ETF, said the firm will draw upon its robust research and analytical foundation, leveraging on the preeminent position of SGX Group and the strong presence of CGS-CIMB, to explore investment opportunities within the ASEAN market.
“This joint effort is poised to optimally address the diversified asset allocation needs of investors, fostering mutual success in the times ahead,” Ge added.
Michael Syn, Senior Managing Director and Head of Equities at SGX Group, said: “This ETF listing marks the first Singapore-domiciled Vietnam ETF on SGX and is an exciting new addition to our ASEAN product shelf.”
CGS-CIMB Securities was formed as a joint venture between China Galaxy International Financial Holdings Limited and CIMB Group SDI Bhd. IT offers investment and financial solutions for retail and institutional clients.
CGS Fullgoal Vietnam 30 Sector Cap ETF’s launch comes as overall ETF flows into Asia surged in the first six months of the year, according to data released by LSEG Lipper.
At the end of June, Asia Pacific EFT assets under management stood at $1.04 trillion on the back of $29.73 billion in fund inflows, according to the data provider.