Best FTSE 250 Investment Trust to Consider Now

Investment trusts represent a significant segment of the FTSE 250, offering diverse options for wealth accumulation. Among these, Vietnam Enterprise Investments Limited (LSE:VEIL) stands out by targeting the burgeoning economy of Vietnam in Southeast Asia. Since its inception in 2016, this trust has achieved an impressive annualized return of approximately 11%, highlighted by a remarkable 30% surge in just the past year.

Why Consider Vietnam for Investment?

Vietnam’s economic growth has been remarkable, characterized by rapid development and modernization. In the third quarter of 2025, the country’s economy expanded by 8.23%, marking its fastest growth rate in over a decade, excluding post-COVID rebounds. This growth rate solidifies Vietnam’s position as the fastest-growing economy in Southeast Asia for that period.

Full-year growth projections for 2025 are estimated at around 8%, a testament to Vietnam’s resilience amid global economic uncertainties influenced by tariffs from the United States. Although the International Monetary Fund (IMF) forecasts a slowdown to approximately 6% to 6.5% next year, this still represents strong growth potential, making Vietnam an attractive option for investors.

In October 2025, FTSE Russell officially reclassified Vietnam as a ‘Secondary Emerging Market’. The transition means Vietnam will be included in the FTSE Emerging Index next year, thereby enhancing its access to larger institutional investors and likely increasing capital inflows into its stock market.

Vietnam Enterprise Investments Limited: A Unique Investment Trust

The trust manages a diverse portfolio of about 48 Vietnamese stocks, valued at roughly £1.45 billion. It employs a ‘barbell’ strategy that combines investments in established blue-chip companies and smaller growth firms poised for future success. This strategy enables the trust to balance stability with potential high returns.

Top 5 Holdings

• Mobile World Investment Corp – Consumer Electronics – 7.2%
• Vinhomes JSC – Real Estate – 6.6%
• Vietnam Technological and Commercial Joint Stock Bank – Banking – 6.3%
• FPT Corp – Technology – 5.1%
• Viet Nam Joint Stock Commercial Bank for Industry and Trade – Banking – 4.9%

Despite a strong year of performance, the trust continues to trade at a 13% discount to its net asset value (NAV). This narrowing gap indicates growing investor confidence in the trust’s future prospects.

Potential Risks

Investors should consider certain risks before investing in Vietnam Enterprise Investments Limited. The trust’s portfolio has significant exposure to sectors such as real estate and banking, which may experience volatility similar to trends observed in China’s property market. Additionally, while the fund’s assets are priced in Vietnamese dong, performance is reported in US dollars. Therefore, fluctuations in currency exchange rates can impact returns for UK investors.

Conclusion: Vietnam’s Investment Appeal

As we move into 2026, the outlook for Vietnam remains optimistic, supported by robust banking fundamentals, strong housing demand, and ongoing reforms in capital markets. Vietnam Enterprise Investments Limited presents a compelling opportunity for those looking to gain exposure to this dynamic economy. The nation is evolving from a focus on low-cost manufacturing to thriving in high-value sectors like technology and electronics, positioning itself as a key player in the region.