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ETF Monitor – SAB, GVR and ACB likely replace REE, SBT and TCH in VN30

Strategy Note 18/06/2021    248

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  • New index basket, including the VN30 index will be announced on 19 Jul 2021, which will come into effect on 02 Aug 2021.
  • According to our estimates, SAB, GVR and ACB will be added in VN30, while REE, SBT and TCH will be removed.

VN30 Index: SAB, GVR and ACB in; REE, SBT and TCH out

Following its exclusion from the VN30 index in the Feb 2021 review, SAB has steadily increased its liquidity in the first half of this year, with the daily matching order trading volume of SAB in this review exceeding 100,000 shares. According to our estimations, SAB will return to the VN30 index after fulfilling liquidity criteria, with its market capitalization ranking 9th in the list of stocks on HOSE.

ACB is a stock that has satisfied all of the screening requirements except the listing time criteria, as the listed exchange changed from HNX to HOSE in End 2020. As a result, after trading on HOSE for 6 months, ACB will be the newcomer to the VN30 index during this period.

GVR’s market capitalization has remained over VND80,000bn since Dec 2020, allowing freefloat adjusted market capitalizations greater than VND2,500bn to be included in the VN30 basket during this time.

ETFs tracked on VN30 will review portfolio based on VN30 Index’ changes

HOSE will announce new list of HOSE-Index constituent (include VN30 Index) on 19 Jul 2021 and the effective date will be 02 Aug 2021.

Based on the above results, ETFs tracks on VN30 Index, with a total net asset value of VND10,400bn (including ETF DCVFM VN30, ETF SSIAM VN30 and ETF FUEMAV30), will rebalance its portfolio on the previous trading date (30 Jul 2021).

We estimate these ETFs will buy VND18.2m ACB shares in this review. VNM, VIC and VRE will also be strongly bought with 1.8m shares, 1.16m shares and 1.95m shares respectively. On the other hand, VPB and TCB will be strongly sold by ETFs with 2.4m shares and 2.1m shares respectively.

Beyond 2021: Bank stocks is waiting for VN30

In the Feb 22 review, we believe that large-scale banking stocks have a lot of potential to enter the VN30 index, especially VIB stock with a market capitalization of more than VND80,000bn, ranked 17th of listed stock on HOSE in 15 Jun 2021, will have the most potential if this market capitalization is maintained until the Feb 22 review.

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