Thai Investors Withdraw from Top Vietnam ETFs E1VFVN30, FUEVFVND

Overview

Thai investors are reducing exposure to two of Vietnam’s largest domestic ETFs, DCVFM VN30 ETF (E1VFVN30) and DCVFM VNDiamond ETF (FUEVFVND), via depositary receipts (DRs) issued by Bualuang Securities. Holdings have fallen to multi-year lows as fund performance lags the broader market, adding to the sustained foreign net selling trend on the Ho Chi Minh Stock Exchange (HoSE).

Key Facts

• As of May 25, 2026, DR units of E1VFVN30 fell by 11.8 million from the start of the year to 90.4 million, representing a market cap of under 4 billion baht (~VND 3,200 billion).
• DR units of FUEVFVND dropped by 10.9 million to 112 million units, with a market cap of about 4.9 billion baht (~VND 4,000 billion).
• The conversion ratio between DR and underlying fund certificates is 1:1, meaning Thai investors indirectly hold the same number of fund units.
• From early 2026 to late May, foreign investors net sold over VND 62,000 billion on HoSE, following a record VND 125,000 billion in 2025.
• DCVFM VN30 ETF returned 0.5% year-to-date, while DCVFM VNDiamond ETF returned -5.4%, both underperforming the VN-Index’s 5.6% gain.
• A third Vietnam ETF, SSIAM VNFINLEAD ETF (VNFIN24), listed in Thailand in late 2025, saw its DR units stall at 15 million units (market cap 27 million baht).
• The combined AUM of the two Dragon Capital-managed ETFs is approximately VND 18,000 billion.

What Happened

According to a report citing data from Bualuang Securities, Thai investors have been steadily selling DRs linked to DCVFM VN30 ETF and DCVFM VNDiamond ETF since the start of 2026. The DR units for E1VFVN30 declined by 11.8 million to 90.4 million, and for FUEVFVND by 10.9 million to 112 million, both reaching the lowest levels in several years. The withdrawals are attributed to the funds’ poor performance relative to the VN-Index, as well as currency concerns.

The article notes that the market’s rally has been narrow, concentrated in stocks from the Vingroup ecosystem, Gelex, and those related to Nguyen Duc Thuy, while many blue chips and widely held stocks have underperformed or declined. This divergence has made the ETFs less attractive to foreign investors, including those from Thailand.

Market Context

Foreign net selling has been a persistent theme on HoSE, with cumulative outflows exceeding VND 62,000 billion in 2026 following a record year in 2025. The Thai DR outflows are part of this broader trend. FUEVFVND closed at VND 37 on April 24, 2026, up 0.59% on low volume of 92,500 shares, indicating thin liquidity. The underperformance of these ETFs, which track the VN30 and VNDiamond indices, highlights the market’s narrow leadership and the challenges faced by passive strategies in the current environment.

Strategic Significance

The sustained withdrawal from these ETFs suggests a structural shift in foreign investor sentiment toward Vietnam’s equity market. The narrow rally, driven by a few large-cap groups, has eroded the appeal of broad-based index funds. For long-term investors, this underscores the risk of concentration in passive vehicles when market leadership is limited. The trend also reflects broader foreign disenchantment with Vietnam’s market, which may persist until the rally broadens or policy changes improve market access and liquidity.

What to Watch

• Monthly DR data from Bualuang Securities for further declines or stabilization in E1VFVN30 and FUEVFVND holdings.
• Q2 2026 performance of the VN30 and VNDiamond indices relative to the broader VN-Index.
• Any policy announcements from the State Securities Commission or SBV aimed at attracting foreign capital.
• Foreign net selling data on HoSE for signs of reversal or acceleration.
• Launch or performance of alternative Vietnam ETFs, such as SSIAM VNFINLEAD ETF, as a gauge of foreign appetite.