Paper Title
Exchange-Traded Funds (ETFS) and Stock Liquidity: Vietnamese Evidences

Abstract
The paper examines how the introduction of Vietnamese ETFs impacts on liquidity of the underlying stocks. We found that the component stock’sliquidity decreased after the first Vietnamese-based ETF (DBX) introduced in 2008, but significantly improved after the other two ETFs introduced in 2009 and 2014 (VNM and E1VFVN30, respectively). In addition, the stock liquidity change is more pronounced for thestock which had lower weight in the ETFs. The empirical findings may result in policy implication about the effects of ETF creation on the Vietnam stock market under different trends of stock market. ETF creation not only providesanew and alternative investment, but also diversified and transparent investment tool to Vietnamese investors.