What is ETF Tokenization? New Investment Opportunities for Young Vietnamese in 2025

Have you ever imagined that with just $20, you could own a piece of the 500 largest companies in America like Apple, Microsoft, and Google? Or with $40, you could invest in global gold and real estate? This is entirely possible with ETF tokenization - a trend that's taking the young investor community by storm.

In Vietnam, several fintech companies are proposing pilot programs for these products. So what exactly are ETF tokens and are they suitable for young investors' budgets?

ETF and ETF Tokenization - Two Concepts You Need to Understand

ETF (Exchange Traded Fund) - or exchange-traded fund - is simply a "basket" containing various stocks designed to track the performance of a specific index. For example:

• VN30 ETF contains the 30 largest Vietnamese stocks
• S&P500 ETF contains the 500 largest US companies
• Gold ETF tracks global gold prices

The beauty of ETFs is that you only need to buy one "product" but own an entire diversified portfolio. Instead of buying individual Apple shares (about $180/share), Microsoft, Google... you just need to buy an S&P500 ETF to "embrace" all 500 giants.

ETF tokenization takes this a step further - converting ETF certificates into "tokens" on blockchain. Each ETF token represents a fractional ownership in the ETF fund, but instead of trading on traditional stock exchanges, you can buy and sell them 24/7 on digital platforms.

Traditional ETF vs ETF Tokens Comparison

Why ETF Token Investment Attracts Young People

From a marketer's perspective, I see ETF tokenization solving three major "pain points" for young investors:

First: Lower capital barriers. A college student with $20 can start investing in global portfolios, instead of waiting to accumulate thousands before "daring" to enter the market.

Second: Increased trading flexibility. Blockchain enables 24/7 trading, not limited by stock exchange hours. You can buy US ETFs at 2am if you want.

Third: Blockchain transparency. All transactions are recorded on blockchain, allowing you to track exactly what you own and how it's being stored.

Global Market Reality and Vietnam

International Situation

According to TheBlock's Q2 2025 report, total assets in tokenized ETFs on major blockchains reached approximately $2.8 billion, up 340% from the same period in 2024.

Major players like BlackRock and Franklin Templeton have successfully deployed ETF tokens on Ethereum and Polygon. In the US and Europe, many young people have started investing through digital wallets without needing traditional brokerage accounts.

"It only took me 5 minutes to own an S&P500 portfolio with $10, feels very refreshing compared to having to go to a bank to open an account" - shared Alex, 24, ETF token investor in Germany.

Situation in Vietnam

Currently, several domestic fintech companies are proposing pilot plans for ETF tokenization to regulatory authorities. Proposed products include: