ETF Monitor – VN30 Index 2H22 review: VIB in, PNJ out

• New HOSE-index basket, including the VN30 index will be announced on 18 Jul 2022, which will come into effect on 01 Aug 2022.
• According to our estimates, VIB will be included into VN30 basket, while PNJ to be removed out of the index.

DCVFM VN30 ETF has the largest capital outflow in 1H22

In 1H22, capital outflow from DCVFM VN30 ETF ranks first among ETFs invested in Vietnam. According to data from Bloomberg, 1H22 capital outflow of DCVFM VN30 ETF reached VND1,450bn, larger than V.N.M ETF at VND717bn and FTSE ETF at VND566bn. We believe this come from the shifting of domestic ETFs capital flows from VN30 ETF to VNDiamond ETF, when this ETF achieved the largest inflow among ETFs in Vietnam with a value of VND5,571bn in 1H22.

Although VN30 Index outperformed VNIndex and other marketcap weighted indexes (VNMidcap index, VNSmallcap index) in 1H22 with a lower reduction, at -19.9% ytd, but as of strong market correction, ETFs based on marketcap weighted index become less attractive than ETFs based on typical indexes such as VNDiamond ETF. Therefore, as the market’s correction is still on, we believe that capital flow is shifting from VN30 ETFs to typical based indexes ETFs like VNDiamond, VNFinlead ETF will continue in 2H22.

VN30 Index 2H22 review: VIB in, PNJ out

A New HOSE-index basket, including the VN30 index, will be announced on 18 Jul 2022, which will come into effect on 01 Aug 2022. We estimate that VIB will be included in the VN30 basket, while PNJ to be removed from the index.

–  For PNJ: based on our data, the average 1-year market capitalization of PNJ is VND23,700bn, ranking 42nd in the list of eligible stocks to enter VN30. With being outside the top 21-40 in terms of market capitalization to be maintained as a component of the VN30 basket, we estimate that PNJ will be eliminated in this review.
–  For VIB: VIB has the largest market capitalization among the current non-VN30 stocks and meets all criteria to replace PNJ in VN30 Index. Based on our data, VIB has an average 1-year market capitalization of about VND63,000bn, ranking 22nd in the list of eligible stocks to enter VN30.

ETFs tracks on VN30 Index, with a total net asset value of VND8,712bn (including ETF DCVFM VN30, ETF SSIAM VN30, ETF FUEMAV30 and ETF KIM Growth VN30), will rebalance their portfolio on the previous trading date (29 Jul 2022).
We estimate ETFs will buy about 8.3m VIB shares, equivalent to about VND187bn while selling about 1.5m PNJ shares, equivalent to VND193bn in this review.

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