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The number of ETFs in the country is currently 7 funds, with a total asset value of about 480 million USD (according to statistics of VNDIRECT Securities Company). In 2020, there are 5 domestic ETFs established, accounting for 70% of the total number of domestic ETFs operating in Vietnam. The new ETFs are based not only on market capitalization indexes (such as VN30 or VN100), but also on custom indices based on the real needs of existing investment funds, including VNDiamond, VNFinlead and VNFinselect…, with very special criteria. The most typical of these is the VFMVN Diamond Fund, with a portfolio of stocks that have run out of space for foreign investors. This is a new investment method for foreign investors to indirectly invest in Vietnamese stocks that have reached the ceiling of ownership limit (room). Although launched on May 20, 2020 with an asset value of only 4.5 million USD, the value of VFMVN Diamond has now increased 49.7 times to 224 million USD, becoming the second largest domestic ETF in the market. Vietnam market, after ETF VFMVN30. According to data from VNDRIECT Securities Company (VNDIRECT), in the first 11 months of 2020, foreign investors net sold 720 million USD of shares on the stock market of Vietnam. The net selling of foreign investors on the Vietnamese stock market was triggered by the net withdrawal of foreign money from emerging and frontier markets. The fact that many new ETFs were established in the first half of 2020, especially VFMVN Diamond (which focuses on investing in stocks that run out of room), has opened up an attractive investment channel for foreign investors who want to invest. into stocks with closed room, thereby opening up more foreign capital flows into Vietnams stock market.
FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS *** MID TERM ASSIGNMENT Module: International Finance The Rise of Exchange-Traded Funds (ETFs) and their Influence on Vietnam's International Capital Markets Hanoi, March 2023 TABLE OF CONTENT Abstract 1 Introduction 1.1 Rationale and objectives of the study 1.2 Objects and scope .4 1.3 Structure of the study Literature review 2.1 Exchange-Traded Funds (ETFs) 2.2 Vietnam's Current Position in International Capital Markets .9 2.3 Current ETFs in Vietnam 10 Evaluation of the possible impacts of ETFs 12 3.1 Possible impacts on Vietnam's International Capital Markets 12 3.2 Possible impacts on related fields 13 Practice of Vietnam's International Capital Markets toward effective environment 14 Recommendation 16 Conclusion 20 References 21 ABSTRACT The number of ETFs in the country is currently funds, with a total asset value of about 480 million USD (according to statistics of VNDIRECT Securities Company) In 2020, there are domestic ETFs established, accounting for 70% of the total number of domestic ETFs operating in Vietnam The new ETFs are based not only on market capitalization indexes (such as VN30 or VN100), but also on custom indices based on the real needs of existing investment funds, including VNDiamond, VNFinlead and VNFinselect…, with very special criteria The most typical of these is the VFMVN Diamond Fund, with a portfolio of stocks that have run out of space for foreign investors This is a new investment method for foreign investors to indirectly invest in Vietnamese stocks that have reached the ceiling of ownership limit (room) Although launched on May 20, 2020 with an asset value of only 4.5 million USD, the value of VFMVN Diamond has now increased 49.7 times to 224 million USD, becoming the second largest domestic ETF in the market Vietnam market, after ETF VFMVN30 According to data from VNDRIECT Securities Company (VNDIRECT), in the first 11 months of 2020, foreign investors net sold 720 million USD of shares on the stock market of Vietnam The net selling of foreign investors on the Vietnamese stock market was triggered by the net withdrawal of foreign money from emerging and frontier markets The fact that many new ETFs were established in the first half of 2020, especially VFMVN Diamond (which focuses on investing in stocks that run out of room), has opened up an attractive investment channel for foreign investors who want to invest into stocks with closed room, thereby opening up more foreign capital flows into Vietnam's stock market Recognizing the relationship between exchange-traded funds international capital markets in Vietnam, we would like to choose the topic: and Introduction 1.1 Rationeale and objectives of the study 1.1.1 Rationeale of the study Concept ETF - short for the phrase Exchange Traded Fund, also known as exchangetraded fund An ETF is a basket of index-operated securities that represent a certain asset such as gold, commodities, stocks, commodity sectors, etc An ETF is a combination of stocks and open-ended mutual funds If before, investors could only buy a single type of stock, now with an ETF they can buy a whole group of stocks in a certain sector ETF is considered a form of general investment, creating diversity for the market Investing in ETFs is when you are trading with pooled assets For example, an ETF can have US stocks, and also include Chinese technology stocks, etc With ETFs, the fund's transaction costs are usually very low For example, the E1 VFVN30 ETF is a passive investment fund that swaps a portfolio of the top 30 stocks on the Vietnamese stock market In a word: you just need to put money into this fund to invest in the top 30 stocks on the Vietnamese stock market History of ETFs ETFs were established in the 1970s, but did not begin to be built until 1980 The first person who laid the foundation for the ETF was economist Harry Markowitz His idea has attracted many investors However, the federal court in Chicago (USA) ruled that ETFs function like futures contracts Because of this, ETFs are only allowed to operate in Canada and cannot be traded in the US Only in 1993, ETFs were allowed to trade in the United States for the purpose of tracking the S&P 500 index During the two years from 1993 to 1995, Barclays Global Investors launched other ETF products Especially the WEBS fund, many investors have easy access to domestic and foreign investment portfolios The fund was later renamed iShares7 MSCI 3 In 1998, one by one, sector-specific ETFs were introduced US investors gradually follow more indexes such as: S&P industry, S&P 500, S&P 400, MSCI, DJI9, NASDAQ 100 In 2001, three ETFs that track the performance of the S&P 500, DJI, and NASDAQ 100 were listed on the NYSE In 2004, the first US commodity ETF was launched, called Gold SPDR (GLD), allowing investors to trade gold After years, in 2008 the US Securities and Exchange Commission opened the way for ETFs to operate In 2010, a term ETF was announced Investors can hold the bonds and are allowed to mature in the same year In 2015, a bond ETF was launched to investors By 2019, ETFs listed in the United States reached $4 trillion Global bond ETFs (AUMs) have far exceeded the $1 trillion figure Features of exchange-traded funds An ETF has some of the following characteristics: - Anyone can participate in the transaction including retail investors - An ETF trades like an individual stock, so it is traded in real time during any trading session - The liquidity of the ETF depends on the index in the group Because ETFs simulate the value of indexes in commodity groups, gold, commodities, etc., there will be ETFs with good liquidity and there are ETFs with illiquidity - The major ETFs on the market today, are all funds based on the typical reference index S&P 500 - An ETF has both the characteristics of an investment fund and the characteristics of a stock listed and traded on most major stock exchanges in the world The price of an ETF stock will change continuously throughout the trading day This is not the same as mutual funds, which are not traded on an exchange 4 ETFs cost less than mutual fund stocks, so they are always an attractive choice for individual investors An ETF can own hundreds or thousands of stocks in different industries, or it can focus on a particular industry or sector How ETFs Work An ETF is a combination of a regular fund and a stock ETFs both have the characteristics and functions of a fund and act like a stock ETF certificates in securities operate on the establishment of the securities portfolio of the founders The founders will set up capital, implement stock selection strategies so that the value of the certificates attracts investors Investors will rely on mechanisms to choose the right certificate for themselves Like a separate security code, ETF is traded to buy and sell continuously during the day according to specific time frames The number of shares outstanding in an ETF can change every day Because new shares are continuously created and existing shares are repurchased, the aim is to keep the price of the ETF similar to the underlying securities Here, new investors play an extremely important role in maintaining liquidity and monitoring the integrity of the ETF through trading 1.1.2 Objectives of the study The article aims to analyze the theoretical issues of the exchange-traded fund - ETF At the same time, analyze and evaluate the reality of birth, situation and performance of ETFs in the world as well as in Vietnam On that basis, the article evaluates the positive and negative effects of ETFs on the international capital market in Vietnam 1.2 Object and scope of the study The object of the study is the exchange-traded fund (ETF) and the international capital market in Vietnam Scope of the study: - About space: In the world and in Vietnam - About time: from the history of formation and development of exchangetraded fund (ETF) to the present time 1.3 Structure of the study The research paper has a structure of sections As follows: Literature review Evaluation of the possible impact of ETFs Practice of Vietnam's International Capital Markets toward effective environment Recommendation Conclusion Literature review 2.1 Exchange traded funds (ETFs) 2.1.1 Definition According to the U.S Securities of Exchange Commission (SEC), Exchangetraded funds (ETFs) are SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets In return, investors receive an interest in the fund In short, an ETF is a type of investment fund and exchange rate product 2.1.2 How ETFs function ETFs can track a particular index, sector, commodity or other assets, creating a diverse collection of securities The ETFs can be purchased or sold on an exchange the way that a regular stock can For example, the first ETF was the SPDR S&P 500 ETF, which tracks the S&P 500 Index Creation of ETF shares: Before investors can trade shares of an ETF on the market, the shares are first created through an arrangement between the ETF sponsor and a party known as an authorized participant (AP) The AP is simply a large financial institution that has the ability to create and redeem shares with the ETF provider When an ETF sponsor decides to create a new fund, they purchase the underlying securities and then exchanges them for a large block of ETF shares of equal value The AP sells those ETF shares to investors or market makers on an exchange Investors buy and sell ETF shares on the market from other investors, the AP or market makers An AP can also redeem ETF shares by executing this process in reverse The AP does this by purchasing enough ETF shares to form a creation unit and redeeming them for the same value of underlying securities, thereby removing those ETF shares from the market 2.1.3 Types of ETFs ETFs are generally characterized as either passively or actively managed Passively managed ETFs aim to replicate the performance of a broader index, such as the S&P 500 Actively managed ETFs have portfolio managers execute specific trading strategies Active ETFs have more benefits over passive ETFs, but they are also more expensive - Index ETFs: Index ETFs are mostly passively managed, which attempt to replicate the performance of a specific index Indexes may be based on the values of stocks, bonds, commodities, or currencies - Bond ETFs: Bond ETFs are used to provide regular income to investors Their income distribution depends on the performance of underlying bonds - Stock ETFs: Stock (equity) ETFs comprise a basket of stocks to track a single industry or sector They have low fees and not involve actual ownership of securities - Commodity ETFs: commodity ETFs invest in commodities such as precious metals, agricultural products, or hydrocarbons such as petroleum - Currency ETFs: currency ETFs enable investors to invest in or short any major currency or a basket of currencies - Inverse ETFs: inverse ETFs are constructed by using various derivatives for the purpose of profiting from a decline in the value of the underlying benchmark or index - Leveraged ETFs: leveraged exchange-traded funds (LETFs or leveraged ETFs) attempt to achieve daily returns that are a multiple of the returns of the corresponding index 2.1.4 Advantages of ETFs Cost advantage: Because most ETFs are index funds, which follow a certain preset basket of investments, the lack of active management allows for a lower expense ratio The cost advantages include, but are not limited to, portfolio management fees, custody costs, administrative expenses, marketing expenses, and distribution Over the long term, these cost differences can compound into a noticeable difference It is also worth noting that mutual funds often hold cash in reserves to meet fund redemptions Because ETFs not need to this, all fund assets can be fully invested Taxation advantage: Unless the investment is sold, ETFs generally generate no capital gains taxes, because they typically have low turnover of their portfolio securities ETFs also not have to sell securities to meet investor redemptions ETFs are not redeemed by investors; any investor who wants to liquidate generally would sell the ETF shares on the secondary market, so investors generally only realize capital gains when they sell their own shares for a gain Trading advantage: ETFs can be bought and sold at current market prices at any time during the trading day, unlike mutual funds and unit investment trusts, which can only be traded at the end of the trading day ETFs can be cheaply acquired, held, and disposed of Options, including put options and call options, can be written or purchased on most ETFs – which is not possible with mutual funds Beside the mentioned advantages, ETFs also provide diversification, and transparency As mentioned above, ETFs track multiple types of assets, which diversify portfolios; and ETF issuers are also required by regulators to publish the compositions of their portfolios on their websites 2.1.5 Risks of ETFs Tracking error: The ETF tracking error is the difference between the returns of the ETF and its reference index or asset A non-zero tracking error therefore represents a failure to replicate the reference index The tracking error is computed based on the prevailing price of the ETF and its reference Tracking errors are more significant when the ETF provider uses strategies other than full replication of the underlying index This type of error is very rare for the most popular ETFs in current days, but they had existed during periods of drastic market fluctuations such as the 2008 crisis Liquidity risks: ETFs have a wide range of liquidity The most popular ETFs are constantly traded The most active ETFs are very liquid, with high regular trading volume and tight bid-ask spreads whose price fluctuates throughout the day This also means ETF prices are vulnerable to fluctuations in the trading markets, causing the prices of ETFs to become unhinged from their underlying values 9 Risk of synthetic ETFs: synthetic ETFs, which not own securities but track indexes using derivatives and swaps, have raised concern due to lack of transparency in products and increasing complexity; conflicts of interest; and lack of regulatory compliance Effects on price stability: Purchases and sales of commodities by ETFs can significantly affect the price of such commodities 2.2 Vietnam’s current position in the international capital market 2.2.1 International capital market A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold Transactions on capital markets are generally managed by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public International capital markets are the same mechanism but on the global scale, in which governments, companies, and people borrow and invest across national boundaries Capital market can be a primary or secondary market In a primary market, the main entities seeking to raise long-term funds on the primary capital markets are governments and business enterprises Governments issue only bonds, whereas companies often issue both equity and bonds The main entities purchasing the bonds or stock include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy individuals and investment banks trading on their own behalf In the secondary market, existing securities are sold and bought among investors or traders, usually on an exchange, over-the-counter, or elsewhere 2.2.2 Vietnam’s current position in the international capital market Small and limited 20 years ago, the Vietnamese capital market has grown to provide a wide range of products Products and services are increasingly diversified to meet the growing needs of investors and other participants Market institutions have become more reliable at providing a safe and sustainable business environment for investors 10 The starting point for formatting capital markets in Vietnam was the establishment of the SSC on 28 November 1996 Throughout its lifetime, the capital markets experienced remarkable growth The country’s overall market size jumped from less than 40% of GDP in 2011 to 104% of GDP as of June 2020 Despite this rapid expansion, Vietnam’s stock market is still much smaller than those in other Asian economies At the same time, the bond market in Vietnam is dominated by government bonds because the corporate bond market is still underdeveloped The capital markets in Vietnam have become important capital mobilizing and investment channels for Vietnamese firms and investors (both foreign and domestic) More financial products and services are being introduced, creating more investment, capital raising, and hedging instruments for market participants and investors However, various challenges also exist First, the size of Vietnam’s stock and bond markets is still small in comparison with those of its peers in the region Though it is being expanded, the range of products and services is still limited compared to other regions, making the market less attractive to investors Because of that, the investor base is quite limited Only approximately 3% of the population is active in the stock market, and most of them are individuals rather than institutions 2.3 ETFs in Vietnam Following the global trend, the number of ETFs in Vietnam, including foreign ETFs and domestic ETFs has had a remarkable increase in the last 10 years FTSE Vietnam ETF and V.N.M ETF are the first two foreign ETFs to invest in Vietnam’s securities market, established in 2008 and 2009 respectively The FTSE Vietnam ETF had the initial asset value of 5.1 million USD and V.N.M ETF had 14 million USD Until the end of 2020, the total value of FTSE Vietnam ETF reached 273 million USD, and V.N.M ETF reached 457 million USD The first domestic ETF established in Vietnam was created in 2014 is VFMVN30 with the initial asset value being million USD, and increased to 322 million USD in 2020 In 2020, five more domestic ETFs were established, accounting for 70% of currently active domestic ETFs in Vietnam This attracts more foreign investors, 11 while opening another channel for foreign capital to flow into Vietnamese stock markets So far, the domestic ETFs show high stability, such as VFMVN Diamond, which shows a growth rate in its asset value of 69.7% in 2020 The scale of this ETF rapidly increased up to 5,280 billion VND, or over 224 million USD Other ETFs of note are SSIAM VN30, VFMVN30, VinaCapital VN100 ETF, SSIAM VNX50, with the growth rate around 20 to 30% 12 Evaluation of possible impacts of ETFs 3.1 Possible impacts on Vietnam in international capital markets As mentioned above, the growth and stability of ETFs in Vietnam have attracted investors from both inside and outside the country Domestic investors have been interested in the movement of ETFs since 2011 In terms of asset size, the two main funds are V.N.M ETF and iShare Frontier Vietnam, with total assets of about $800 million, can be classified as a large-scale foreign investment fund in Vietnam The emergence of domestic ETFs in 2020 is expected to perform better than foreign ETFs, because the domestic fund will benefit from the regulatory frameworks and swap trading system that allows for parallel trading (arbitrage), which the foreign funds not have the opportunity to Moreover, when domestic ETFs are created, they will attract more foreign investment capital to pour into the stock market without breaking the foreign ownership ratio This will create a positive signal for the market when domestic investors are still afraid of risks and have not dared to pour capital into the stock market, making the market more vibrant, increasing liquidity, thereby creating an attractive attraction Domestic investors return to the stock market, especially in the current context when bank interest rates are falling, domestic investors are struggling to find effective investment directions for their capital As mentioned above about the position of Vietnam in the international market being improved, before the ETFs appeared in Vietnam, the capital market had lower scale and growth After ETFs appeared for a few years, the time when investors started to be interested in them was also the point where the capital market in Vietnam experienced an increase in overall market size ETFs is not the main cause for said expansion, but it certainly did have an important impact ETFs have pushed the capital market in Vietnam into the sight of investors, allowing the country to capitalize on foreign investments, thus making Vietnam a more prominent destination in the international capital markets 3.2 Possible impacts on other related fields Because the main impact of the ETF as discussed is attracting more foreign investment through an exchange, it can be assumed that its impacts to the economy are indirect results of said foreign investment: Bring a source of finance for 13 economies that are short of capital, filling the gap between investment and saving needs; contributing to improving the international balance of payments In addition, this capital source also stimulates consumption, increases income, thereby improving the living standard of society through investment activities at international market prices and interest rates State-owned enterprises, thanks to the motivation from capital flows, will take part in promoting equitization of enterprises, promoting the issuance of government bonds and corporate bonds ETFs create the opportunity to increase capital flows quickly, creating an important source of capital for private development 14 Practice of Vietnam's International Capital Markets toward effective environment Vietnam has taken several steps to develop the international capital markets toward an effective market environment Regulatory framework reforms: The Vietnamese government has implemented reforms to align its capital markets with international standards This includes enhancing transparency, disclosure requirements, and strengthening investor protection measures Market Development Initiatives: Vietnam has taken steps to develop and expand its capital markets This includes establishing and developing stock exchanges, such as the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) These exchanges provide a platform for companies to list and trade their shares, enhancing market liquidity and attracting domestic and foreign investors Foreign Ownership Restrictions: Vietnam has eased foreign ownership restrictions in various sectors, including the financial and banking sectors By relaxing these restrictions, Vietnam aims to attract more foreign investors and increase their participation in the capital markets Market Surveillance and Enforcement: Vietnam has strengthened market surveillance and enforcement mechanisms to ensure fair trading practices and deter market manipulation This includes the establishment of regulatory bodies such as the State Securities Commission and the State Bank of Vietnam, which oversee and regulate capital market activities Diversification of Investment Products: Vietnam has focused on expanding the range of investment products available in its capital markets This includes introducing new financial instruments such as exchange-traded funds (ETFs), derivatives, and fixed-income securities These initiatives aim to provide investors with a diverse array of investment options and enhance market depth Market Information and Education: Vietnam has made efforts to improve the dissemination of market information and increase investor education This includes initiatives to enhance transparency through the disclosure of financial 15 information, timely reporting requirements, and investor education programs aimed at promoting awareness and understanding of capital market activities International Integration and Collaboration: Vietnam has actively pursued international integration and collaboration with other capital markets This includes joining regional forums, participating in cross-border initiatives, and entering into bilateral and multilateral agreements Such integration efforts aim to enhance market connectivity, attract foreign investment, and facilitate cross-border capital flows 16 Recommendation Enhancing Investor Education and Awareness: To enhance investor education and awareness about ETFs, a multi-faceted approach can be adopted: a) Collaborative Efforts: Regulators, financial institutions, and ETF providers should collaborate to develop educational materials and initiatives This can involve establishing partnerships or task forces dedicated to investor education By pooling resources and expertise, these entities can create comprehensive and tailored educational programs b) Educational Materials: The development of educational materials is crucial to provide investors with accurate and accessible information about ETFs These materials should explain the concept of ETFs, their structure, and how they differ from other investment vehicles They should also highlight the benefits, risks, and potential returns associated with ETF investments Clear and concise explanations, supplemented with graphs, charts, and real-world examples, can facilitate understanding c) Workshops and Seminars: Conducting workshops and seminars can provide investors with an interactive learning experience These events can feature industry experts who can explain the nuances of ETF investing, address investor concerns, and offer guidance on portfolio construction and risk management Practical exercises, case studies, and Q&A sessions can further enhance the learning process d) Online Resources: Creating online platforms dedicated to ETF education can reach a wider audience These platforms can host educational videos, webinars, and downloadable resources Frequently asked questions, glossaries, and interactive tools can help investors navigate the complexities of ETF investing Additionally, online forums and discussion boards can facilitate knowledge sharing and provide a space for investors to seek guidance and share experiences e) Collaboration with Financial Advisors: Collaborating with financial advisors is crucial to ensure that they possess adequate knowledge about ETFs and can effectively guide their clients Regulators can establish certification programs or training requirements for financial advisors to ensure they possess the necessary 17 expertise to advise clients on ETF investments This can include ongoing professional development and access to up-to-date resources f) Investor Protection Information: Alongside educating investors about the benefits and risks of ETFs, it is important to inform them about their rights and protections Clear information about complaint procedures, regulatory safeguards, and avenues for dispute resolution should be provided to instill confidence and trust in the market Promoting Liquidity and Market Efficiency: To promote liquidity and market efficiency in the ETF market, several strategies can be implemented: a) Market-Making Activities: Market-making plays a crucial role in ensuring liquidity in ETFs Regulators and market participants can encourage authorized participants (APs) to engage in market-making activities by providing incentives such as reduced trading fees or access to additional services This can attract more APs and enhance the liquidity of ETFs In addition, transparent rules and procedures for market-making should be established, including obligations for APs to provide continuous two-sided quotes and maintain sufficient inventory to facilitate trading b) Participation from Authorized Participants: Encouraging increased participation from authorized participants can help deepen the liquidity pool for ETFs Regulatory measures can be implemented to ensure that APs have fair access to ETF creation and redemption processes This can include streamlining the creation and redemption process, reducing associated costs, and ensuring timely settlement Promoting a competitive and efficient ecosystem for APs can enhance liquidity and market efficiency c) Trading Infrastructure: Improving trading infrastructure is essential for facilitating efficient trading in ETFs This includes upgrading trading platforms, enhancing connectivity, and implementing advanced trading technologies Regulators can collaborate with market operators to ensure the availability of robust and reliable trading systems that can handle the increasing trading volumes of ETFs The development of alternative trading venues, such as electronic trading platforms, can also promote competition and improve price discovery 18 d) Surveillance and Market Integrity: Effective surveillance mechanisms are necessary to detect and deter market manipulation and ensure fair trading conditions Regulators should monitor ETF trading activities, including tracking patterns, analyzing trading volumes, and identifying any irregularities Real-time surveillance systems and data analysis tools can help detect potential market abuses and trigger appropriate regulatory actions Additionally, regulators should establish mechanisms for investigating and punishing any instances of market manipulation to maintain market integrity e) Circuit Breakers and Volatility Controls: To mitigate excessive volatility and potential systemic risks, regulators can consider implementing circuit breakers or other volatility controls for ETFs These mechanisms can temporarily halt trading or impose trading restrictions when price movements exceed predefined thresholds Circuit breakers can help prevent abrupt market movements and allow time for market participants to reassess and adjust their trading strategies Diversifying ETF Offerings: To promote the growth and attractiveness of the ETF market in Vietnam, diversifying the range of available ETF offerings is essential This can be achieved through the following approaches: a) Thematic ETFs: Thematic ETFs focus on specific investment themes or sectors, allowing investors to gain exposure to specific industries, trends, or emerging markets By introducing thematic ETFs in areas such as technology, renewable energy, healthcare, or consumer goods, investors can have access to targeted investment opportunities aligned with their interests or market expectations b) Sector-Specific ETFs: Sector-specific ETFs provide exposure to specific sectors of the economy, such as financial services, real estate, or manufacturing By offering sector-specific ETFs, investors can gain targeted exposure to sectors that they believe will outperform the broader market or sectors that they want to allocate their investments to c) Alternative Asset ETFs: Alternative asset classes, such as commodities, real estate investment trusts (REITs), or infrastructure, offer diversification benefits beyond traditional equity and fixed-income investments Introducing ETFs that track