Foreign ETF duo of $700 million wins big thanks to Vingroup stocks, why are they still facing capital withdrawal?

After a disappointing 2024, VNM ETF and FTSE ETF (with nearly $700 million in assets) recorded impressive performance with a growth rate above 11% since the beginning of 2025, largely due to a significant proportion of Vingroup stocks. The trio VIC, VHM, VRE is among the top holdings in both ETFs, contributing nearly 100 points to VN-Index. However, both ETFs faced substantial capital withdrawal, with VNM withdrawing over $61 million and FTSE around $18 million since early 2025, on top of a total of $130 million in net withdrawals last year. The main issue lies in their inability to invest in stocks with room limits and a lack of diversity in their investment portfolios. While expectations for a new wave of commodity offerings and economic reforms could provide opportunities, Vietnamese securities still struggle to attract substantial foreign capital. Resolution 68 aimed at developing the private economy and technological reforms is anticipated to be a key to sustainable economic growth in the future.