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ETF Monitor – VN30 1H22 review: No changes are expected

Strategy Note 28/12/2021    101

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  • The VN30 Index will be reviewed on Jan 2022 and be effective since 07 Feb 2022.
  • We expect no changes to this VN30 index 1H22 review, based on our estimate.

VN30 index lost its steam in 2021
As at 24 Dec 2021, the VN30 index grew 38% ytd, outperforming the VNindex (31.8% ytd) but trailing behind other indexes. As money has poured into small and mid-cap stocks since this July, the VNSmallcap Index and VNMidcap Index became the best performers with 96.4% ytd and 67.4% ytd, respectively. The VNDiamond and VNFinlead rallied 57.3% ytd and 50.0% ytd, respectively.

According to our fundflow analysis, DCVFM VN30 ETF experienced net outflow of c.VND1,100bn ytd, as at 24 Dec 2021. This withdrawal could be partially explained by a fund relocation into DCVFM VNDiamond ETF in 2021.

VN30 Index review: We expect no changes in this review
The VN30 Index will be reviewed on Jan 2022 and be effective since 07 Feb 2022. We expect no changes in this review as all VN30 constituents currently meet the criteria, based on our estimates

ETFs tracks on VN30 Index, with a total net asset value of VND11,250bn (including ETF DCVFM VN30, ETF SSIAM VN30 and ETF FUEMAV30), will rebalance its portfolio on the previous trading date (28 Jan 2022).

However we see some banking stocks that have chances to be added in the 2H22 review
We observed that some banking stocks missed chances to be added in VN30 basket in 1H22 review, mainly due to the recent price correction which dampened the market capitalization of these stocks. Meanwhile, current VN30 constituents are still eligible to stay in the VN30 basket.

However, some banking stocks would be in our watch list for an upgrade in 2H22, if one of these happened:

  1. VIB and SSB would come in Top 20 largest in term of market cap (currently, VIB and SSB are ranking at the 22nd and the 24th, respectively); or
  2. Any VN30 constituents would come out Top 40 largest in term of market cap (For example, currently, KDH and PNJ stay at the 36th and 37th, respectively).

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