KPHO provides investors with targeted exposure to Vietnamese companies selected using a fundamental and proprietary growth methodology within one of Southeast Asia’s most dynamic and promising economies, KraneShares said.

Dragon Capital, Vietnam’s largest fund manager by assets, will serve as the fund’s sub-advisor.

“We believe Vietnam is becoming a key growth engine within global emerging markets,” said Jonathan Krane, CEO of KraneShares. “With favorable demographics, a young and skilled workforce, and rising foreign direct investment, the country is positioned to benefit from global supply chain diversification and surging consumer demand.”

By investing in Dragon Capital’s locally-listed Diamond ETF, KPHO offers investors comprehensive access to Vietnam’s capital markets. This innovative structure helps overcome traditional barriers, such as foreign ownership limits, enabling investors to participate in the country’s next phase of growth.

Vietnam's stock market status has been upgraded from frontier to secondary emerging by global index provider FTSE Russell, with the reclassification set to go into effect in September 2026.

It is also on the radar for a similar upgrade from MSCI. Dragon Capital estimates that upgrades from both providers could potentially drive approximately $25 billion in new inflows into Vietnam’s equity market, or 9% of the country’s current market capitalization.

“As one of the fastest-growing economies in the world, Vietnam is poised to enter a golden era of opportunity,” said Dominic Scriven, chairman and co-founder of Dragon Capital. “KPHO provides investors efficient and broad access to Vietnam’s equity market during a pivotal moment, as the country moves toward inclusion in major global benchmarks like FTSE and potentially MSCI Emerging Markets,” he stressed.