ETF Dictionary

Understanding Tracking Error in ETF Investments What Is an ETF? Firstly, let’s understand what an ETF is. An Exchange-Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges, much like stocks. ETFs hold assets such as stocks, commodities, or bonds and are popular for their liquidity and low expense ratios […]

Understanding Price to Book PB Ratio – A Beginner’s Guide to Investing in ETFs. If you’re new to investing, you may hear the term P/B Ratio. In this blog post, KIS Vietnam will explain the concept of the Price-to-Book Ratio, what it signifies, and how it can be useful for investors. 1. What is the […]

Understanding about PE Ratio- A Beginner’s Guide to Investing in ETFs. This guide will explain the Price-to-Earnings (P/E) ratio, and how it helps investors, especially when considering Exchange-Traded Funds (ETFs). 1. What is P/E Ratio? P/E Ratio or Price-to-Earnings ratio, is a fundamental metric used to evaluate whether a company’s stock is worth buying. The […]

Explaining the term of Initial Public Offering (IPO) of an Exchange-Traded Fund (ETF). A Beginner’s Guide to Investing in ETFs 1. What is an Initial Public Offering (IPO)? An Initial Public Offering (IPO) of an Exchange-Traded Fund (ETF) refers to the process of introducing and selling ETF shares to the general public for the first […]

Explanation of Settlement Day What is Settlement Day? 1. What is Settlement Day? According to VSD, The day when buyers or sellers receive securities or cash in the clearing and settlement process for securities or ETFs traded on stock exchanges . It marks the finalization of a financial transaction, typically occurring about 2 business days […]

Explain the term Composition securities in ETF by KIS Vietnam. Composition Securities According to VSD Vietnam, The term “composition securities” refers to the detailed structure of a securities portfolio within an investment fund, such as a mutual fund or exchange-traded fund (ETF). It involves specifying the individual securities, financial instruments, or assets that make up the […]

Explaining the Term “Fund Manager” and the Role of the Fund Management Company 1. Who is a Fund Manager?  A Fund Manager, also known as a Fund Management Company (FMC), is an established organization tasked with managing funds registered with the Vietnam Securities Depository (VSD). The Fund Manager is a professional entity responsible for managing, […]

Exploring the Term: Liquidity Provider (LP) in ETF Trading with KIS Prime ETF To comprehend the term accurately, let’s begin by understanding that “liquidity” refers to a financial product or security that can be quickly and easily converted into cash without significantly impacting its value. What is a Liquidity Provider for ETFs 1. What are Liquidity […]

Explaining the term Liquidity with KIS Prime ETF 1. What is Liquidity?  The term “Liquidity” refers to the ability of a financial asset or market to be quickly and easily converted into cash without significantly affecting its value. This is a crucial aspect of finance and investment, impacting the buying and selling capabilities and prices […]

Explaining the Term “Index Fund” in the Stock Market. Let’s get close to ETF Investments with KIS Prime ETF. What is an Index Fund? An Index Fund is a term used to describe investment funds that track specific indices, replicate designated indices, offering investors a strategic method for diversifying, allows individuals to own stocks aligned […]

Explaining the Term “Index” in Securities What Is A Market Index? A market index is essentially a statistical tool used to assess the performance of a specific stock, an industry, or the overall stock market that help us understand how well a specific financial market or part of it is doing An Index describes and […]

What Does the Redemption of an ETF?  The redemption of an ETF refers to the process of the APs and investors selling their ETF shares back to the fund manager, typically in exchange for the underlying assets of the ETF. This process is the counterpart to the creation of ETF shares. Here’s a breakdown of the […]

What Does the Creation of an ETF Process?  The creation ETF involves converting a basket of securities into ETF shares. Let’s break down the steps involved in this process with KIS Vietnam ETF:  1. AP will send an order to the Fund Manager to convert a Basket of Stocks for Exchange Traded Funds share 2. […]

Explaination about Custodian Bank 1. ETF Term: What is Custodian bank? Custodian banks are supervisory banks assigned by Fund Manager on a contractual basis as the supervisory banks for ETFs. Custodian banks are financial institutions that are responsible for holding and safeguarding the assets (securities, cash, ) that make up the ETF’s portfolio. The role […]

Explain ETF Term: What is Asset allocation Embarking on the journey of ETFs in the dynamic Vietnam market, it’s crucial to grasp the fundamental concept of “Asset Allocation” with KIS Prime ETF.  1. What is Asset allocation ?  Asset allocation is a smart way to spread your money across different types of investments in your […]

What is AP? Term of AP in the stock market? briefly explain the definition and activities of Authorized Participants of Exchange-Traded Funds 1. What Is an AP? The term AP stands for Authorized Participant  An authorized Participant is a financial company( full services brokerage and depository banks) that enters into a legal contract with an […]

ETF is one of the investment funds that traded on stock exchanges to track a benchmark index. In Vietnam, An Exchange Traded Fund is a secure and popular investment on the stock market. What is ETF?  ETF is called an Exchange Traded Fund – a well-known investment product that tracks an underlying index or industry […]

In the world of investment and the stock market, you may have come across the term NAV Let’s explore the meaning with KIS Vietnam. 1. What is Net Asset Value (NAV)?  The term NAV is abbreviated Net Asset Value  per unit NAV refers to the total value of assets held by a fund or company, minus […]