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ETF Monitor – All eyes on HSG and PDR

Strategy Note 25/05/2021    209

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  • FTSE ETF (FTSE VN Index) and V.N.M ETF (MVIS VN Index) will announce their portfolio review on 4 Jun and 11 Jun 2021, respectively.
  • HSG is likely to be added in while DXG will be removed from FTSE Vietnam Index. For V.N.M ETF, PDR, HSG and KDH will be newly added.
  • Major beneficiaries during this review could be HSG & PDR, in our view.

FTSE Vietnam Index: HSG in, DXG out
For FTSE ETF rebalancing, HSG is likely to be added into ETF’s portfolio, as it met all FTSE Vietnam Index requirements. On the other hand, DXG will be removed from FTSE ETF after falling into warning status of HOSE due to negative net profit in FY20.
Per this change, we estimate FTSE ETF will buy about 2.7m HSG shares and sell 4.0m DXG shares in this review to rebalance ETF’s portfolio

V.N.M ETF: PDR, HSG and KDH are likely to be added
Based on data as of 21 May 2021, we estimate PDR, HSG and KDH will be included in V.N.M ETF in this rebalancing period since they met requirements to be constituents of MVIS Index, which is the based index of V.N.M ETF to track. We expect the country weight of Vietnam to stay at 70% of the index with the total number of Vietnam’s stocks is 19.
We expect PDR, HSG and VNM to enjoy a stronger net-buying value from two ETFs, while HPG and NVL might experience the selling pressure in 2Q21 rebalancing

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