The top three sectors in this ETF are: Real Estate, 26.32% of assets; Financial Services, 15.27%; and Consumer Defensive, 14.87%.
VanEck Vectors Vietnam ETF (VNM)
From Jack Adamo’s Insiders Plus
With the tariff war still in progress and unlikely to end without casualties on all sides, supply chains are all over the world, but not all countries are bringing the work back home. One country that seems to be benefiting from the trend is Vietnam, where the labor is noticeably cheaper than in China. In fact, even Chinese companies are moving production over there. The tires that I’ve used for years from the South Korean company, Kumho, are now made in Vietnam. They are not as good as those from SK and I won’t buy them again, but like Japan and China, they will probably catch up on quality in the coming years. Meanwhile, the trend grows.
The chart of the VanEck Vectors Vietnam ETF (VNM) has just broken into a golden cross, that is, the 50-day moving average has just crossed above the 200-day average. That is usually a very good sign, and seeing as how it aligns with the supply chain trends, it makes sense. The fund’s P/E is 16, which is significantly lower than our market, yet the ETF has better long-term growth prospects.
The VanEck Vietnam ETF has sold for as high as $25.50 and as low as $12 in the eight years it has been around. Right now, it’s about 20% below its 52-week high, but with its golden cross, strong on-balance-volume and strong Relative Strength Index, I think it has a good chance to continue to grow, even if the overall market doesn’t.
Still, given the global economic headwinds, nothing is certain, so I will keep this stock on a short leash. I won’t hold on to any dead weight in the current environment. The VanEck Vectors Vietnam ETF is a buy up to $17.10.
Jack Adamo, Jack Adamo’s Insiders Plus, www.jackadamo.com, March 16, 2019