ETF Monitor – VNDiamond 3Q22 review: NLG likely to replace TCM
Strategy Note 23/12/2022 100
- HOSE will announce the result of VN30 index on 16 Jan 2023, which will be effective since 06 Feb 2023.
- Based on our estimate, BCM will likely be included, while KDH might be removed out of the VN30 index
Vietnam has enjoyed net ETFs inflow of VND12,636bn in 4Q22
ETFs recorded a net inflow of VND12,636bn (US$537m) into Vietnam in 4Q22, (compared to only VND6.4bn in 3Q22). Among ETFs, Fubon ETF experienced the highest inflow in 4Q22 with VND5,252bn(~41% total inflow), followed by VNDiamond ETF with VND2,890bn(~22.6% total inflow) and V.N.M ETF with VND2,762bn(~21.6% total inflow).
For 2022, net ETFs inflow recorded VND20,853bn (US$880m), +4.3 times yoy, mainly thanks to the large contribution of Fubon ETF (~53.2% total inflow) and ETF VNDiamond (32.8% total inflow). We saw that ETFs inflow accounted 81% to total foreign net bought value in 2022.
VN30 Index 1H23 review: BCM likely to replace KDH
HOSE will announce the result of VN30 index on 16 Jan 2023, which will be effective since 06 Feb 2023. We expect BCM likely to be included into VN30 basket, while KDH to be removed out of the VN30 index.
Based on our estimate, BCM has a freefloat of above 3% to make average freefloat adjusted marketcap in 2022 above VND2,500bn which will meet requirements of VN30 index in this review period. Once, BCM is included in the VN30 basket, KDH, the smallest in term of 2022 average freefloat adjusted marketcap (~VND24,468bn) will be excluded in this review.
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