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ETF Monitor – VN30, VNDiamond & VNFinlead review results

Strategy Note 18/01/2023    150


  • On 16 Jan 2023, HOSE announced a new VN30 index basket, from which BCM will replace KDH on 6 Feb 2023.
  • Based on the review results of VN30, VNDiamond and VNFinlead index, we estimate that MWG, GMD and OCB might be among top strong buy stocks while MSB, MBB and TCB likely are top sell stocks by ETFs.
BCM will replace KDH in VN30 index since Feb 2023
HOSE announced the result of new VN30 index basket on 16 Jan 2023, which will be effective from 06 Feb 2023. Accordingly, BCM has met all the requirements of VN30 Index to be included into VN30 basket while KDH, the smallest in term of 2022 average freefloat adjusted market cap will be replaced in this review. After this review, bank stocks and property stocks are 11 and 7, respectively, making up 45.7% and 15.1% of VN30 market cap.
Since year-to-date, the VNFinlead is the strongest growth index with 13% ytd thanks to the bounce back of banking sector. VN30 Index grew 9.8% year-to-date, followed by VNIndex (8.1% ytd) and VNDiamond (5.4% ytd).
ETFs will conduct portfolio rebalancing right after Lunar New Year
ETFs tracking the VN30 Index, VNDiamond Index and VNFinlead Index, with current total net asset value of VND32,046bn (including ETF DCVFM VN30, ETF FUEMAV30, ETF KIM Growth VN30, ETF DCVFM VNDiamond and ETF SSIAM VNFinlead), will rebalance its portfolio from 27 Jan to 03 Feb 2023, right after the Lunar new year holiday.
We estimate the upcoming rebalancing total value of ETFs could be about VND3,500bn, equivalent to about 35% of the average trading value of the past recent 10 trading days. VNDiamond ETF, the current largest ETF fund in term of NAV, will be the most active players, accounting for nearly 80% rebalancing total value. We believe the rebalancing activities of ETFs might cheer up the market in the early spring trading days.

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