ETF Monitor – VN30 Index: Bank proportion to be enlarged

• HOSE announced new VN30 index constituents on 18 Jul 2022, which VIB officially replaces PNJ from 01 Aug 2022.
• With data as of 19 Jul 2022, we estimate ~12.5m shares of VIB will be bought while 3.5m shares of PNJ will be sold by ETFs fund after review.

VN30 Index: Bank proportion to be enlarged
As VIB replacing PNJ in VN30 Index, effecting from 01 August 2022, the number of Bank stocks in VN30 index is 11, with a market capitalization of about VND1.2tr, accounting for 38.6% of the VN30 Index market capitalisation (+1.3% pts compared to the previous VN30 index portfolio).
Compared to VNIndex, Bank sector in the VN30 index plays a more important role (38.6% compared to 31.2% of market capitalisation in the VNIndex) due to 1) Bank sector plays a core role in Vietnam economy and often has large size in term of market capitalisation, 2) Industrial sector (accounting for 5.3% market capitalisation in VNIndex) do not appear in VN30 Index to leverage the proportion of Bank sector in VN30 Index.

For VNDiamond index, with its components unchanged, is also updated its weighting data to the latest in this review.

ETFs track on VN30 Index and VNDiamond index can buy 12.5m VIB shares and sell 3.5m PNJ shares
ETFs track on VN30 Index, with a total net asset value of VND8,375bn (including ETF DCVFM VN30, ETF SSIAM VN30, ETF FUEMAV30 and ETF KIM Growth VN30) and ETF DCVFM VNDiamond tracks on VNDiamond Index, with a net asset value of VND17,236bn, will rebalance its portfolio on 29 Jul 2022.
We estimate ETFs will buy about 12.5m VIB shares, equivalent to about VND305bn while selling about 3.5m PNJ shares, equivalent to VND394bn in this review.

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