ETFs change their portfolio in the third quarter of 2022

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Fubon ETF leads the way in attracting capital flows to ETFs in the Vietnam market in the first 8 months of the year

Fubon ETF (simulating the FTSE VN30 index) still maintained its net capital attraction from July 2022 to August 2022, while VNDiamond ETF was withdrawn in the same period and became the leading ETF attracting capital in Vietnam with a net inflow of VND 5,718 billion in the first 8 months of the year. Fubon ETF maintains the 2nd largest net asset value among ETFs investing in Vietnam with a value of VND 14,254 billion (only behind VNDiamond ETF).

Meanwhile, FTSE VN ETF had a reversal from net withdrawal to net withdrawal in the period of July - August 2022 to reach 286 billion dongs of net withdrawn capital in the first 8 months of the year.

SSB and DGC can replace HDB and HSG in VN30 Index, and SHB can be included in FTSE VN Index

The new FTSE index baskets, including the FTSE Vietnam Index and the FTSE VN30 Index, will take effect on September 19, 2022.

Based on the data up to August 25, 2022, INDIRECT Securities Company believes that SSB and DGC will be included in the FTSE VN30 index in this periodic review because SSB and DGC meet all the criteria of FTSE VN30, capitalization. The market capitalization of SSB and DGC ranked 11th and 18th, respectively, at 62,101 billion dongs and 35,008 billion dongs.

On the other hand, HDB and HSG are likely to be excluded from FTSE VN30 because HDB did not meet the requirements of the screening process, specifically did not meet the condition that the headroom (% of residual value of foreign room) must be higher than 10 % for existing member codes. In addition, SSB and DGC have the advantage to enter FTSE VN30, HSG with the smallest capitalization in the top 40 will be excluded from the FTSE VN30 basket.

The ETFs that mimic the FTSE indices, with a net asset value of VND 14,254 billion (Fubon ETF) and VND 7,191 billion (FTSE VN ETF), will rebalance their portfolios on the previous trading day (September 16, 2022).

INDIRECT estimates that Fubon will buy about 25 million shares of SSB and 3.5 million shares of DGC, about VND 811.2 billion and VND 343.0 billion respectively. Meanwhile, Fubon will sell about 4.7 million HSG shares and 9.3 million HDB shares, respectively, about VND 103.7 billion and VND 246.9 billion.

To rebalance the FTSE index, SHB is likely to be included in the portfolio and will not remove any stocks during this review period.

It is estimated that FTSE VN ETF will buy about 1 million shares of SHB and 0.5 million shares of STB, equivalent to VND 162 billion and VND 136 billion in this review period; sold about 308,000 VHM shares and 231,000 VIC shares, respectively, 184 billion dongs and 150 billion dongs.

SAB and THD may be excluded from the MVIS Vietnam Index

The new MVIS index basket (simulated by V.N.M ETF) will be announced on September 8, 2022, and take effect on September 19, 2022.

Based on data as of August 25, 2022, INDIRECT estimates that SAB and THD will be excluded from the V.N.M ETF during this periodic review for failing to meet the index's liquidity requirements.

“We expect Vietnam's national weight to be at 82% of the index with a total of 41 Vietnamese stocks,” said an INDIRECT expert.

It is estimated that in this periodic review, V.N.M ETF will buy about 4 million SHB shares and 0.9 million KDH shares, equivalent to VND 63 billion and VND 33 billion in this evaluation period and sell about 0.9 million THD shares and 0.2 million SAB shares, equivalent to 49 billion dongs and 39 billion dongs.

PV