XTrackers FTSE Vietnam Swap UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 85bps

Trading Currency: GBX

Pays Income: False

Listing Date: 07 Feb 2008

Ticker: XFVT

ISIN: LU0322252924

This investment product offers targeted exposure to the Vietnamese equity market, providing a gateway to one of Southeast Asia's most dynamic and rapidly growing economies. Vietnam has established itself as a significant player in the global manufacturing and export landscape, benefiting from the ongoing "China plus one" supply chain diversification strategy. The country's strong economic fundamentals are supported by a young, educated, and growing workforce, increasing foreign direct investment, and a government committed to market-oriented reforms. By investing in a basket of leading Vietnamese companies, investors can participate in the nation's compelling growth story, driven by domestic consumption, industrialization, and greater integration into the global economy.

The underlying index captures the performance of the largest and most liquid companies listed on the Ho Chi Minh Stock Exchange, spanning key sectors such as real estate, financials, industrials, and consumer goods. This provides a broad representation of the local economy. While the potential for high returns is significant, investing in a single emerging market carries inherent risks, including market volatility, currency fluctuations, and geopolitical uncertainties. The instrument's synthetic replication structure aims to track the index's performance closely and efficiently, but investors should be aware of the associated counterparty risk.

This fund is best suited for investors with a long-term perspective and a higher-than-average risk tolerance who are looking to add a dedicated emerging market position to a well-diversified portfolio. It serves as a strategic tool to capitalize on the structural growth trends shaping Vietnam's future, offering a pure-play approach to a frontier market transitioning towards emerging market status.