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ETF Monitor: SHB likely to be added in V.N.M ETF

Strategy Note 30/11/2020    535

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  • FTSE ETF (FTSE VN Index) and V.N.M ETF (MVIS VN Index) will conduct 4Q20 review and announce their portfolio review on 4 Dec and 11 Dec 2020, respectively.
  • SHB is likely to be added in MVIS Vietnam Index while FTSE VN portfolio has no change.

MVIS Vietnam Index: SHB to move in

For V.N.M ETF rebalancing, SHB is likely to be added into V.N.M ETF’s portfolio, as it met all the MVIS Vietnam Index requirements and fell into top 85% of the free-float market capitalisation of the investable universe qualified for selection.

We expect the country weight of Vietnam to stay at 67% of the index with the total number of Vietnam stock is 16.

By this change, we estimated V.N.M ETF will buy about 22m SHB shares in this review, equivalent to 4% of V.N.M ETF’s NAV.

FTSE Vietnam Index: No change

Based on data as at 26 Nov 2020, we estimate FTSE VN portfolio has no change in this review.
PDR passed the liquidity criteria in this review, but PDR need to pass the liquidity rule for two consecutive reviews as it was removed from FTSE VN in 2Q20 review, before being a constituent of FTSE VN ETF again.

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