Understand how daily and annualized return volatility (sigma) is calculated across 252 trading sessions for Vietnam ETFs.
Annualized Volatility (σ) is the standard deviation of an ETF's daily logarithmic or arithmetic returns scaled across 252 trading days per year.
Broad-market ETFs like E1VFVN30 and FUEVN100 generally exhibit lower annualized volatility than concentrated sector or midcap funds like FUESSVFL or FUEDCMID.
Because variance scales linearly with time under independent daily increments, standard deviation (the square root of variance) scales with the square root of the 252 annual trading sessions on HOSE.
Related Quantitative Terms
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