Foreign ETFs will undergo a quarterly portfolio restructuring in Q3 2024, as per the schedule below. The FTSE and MVIS index groups will need to complete their portfolio restructuring by September 20th.
Based on data updated on August 27th, SSI Research predicts that the FTSE Vietnam Index will add KDH, FRT, and FTS to its basket of stocks. Specifically, among the FTSE criteria of market capitalization, liquidity, free float, and foreign room remaining, KDH has met the final criterion after the foreign room increased to 11.9%. Additionally, compared to the previous period, FRT and FTS have met the liquidity criterion.
EVF may be removed from the index for failing to meet the requirements for the free-float ratio and free-float market capitalization.
Assuming the above changes, the index portfolio will comprise 30 stocks. The total assets of the FTSE Vietnam Swap UCITS ETF as of August 27th amounted to VND 7,377 billion (USD 296.7 million). Specifically, the total asset value of the fund decreased by -16% compared to the beginning of the year, NAV decreased by -4.1% compared to the beginning of the year, and net outflows reached -VND 1,243 billion (USD 50 million).
It is estimated that the FTSE Vietnam Swap UCITS ETF will purchase approximately 5.1 million KDH shares, 805,000 FRT shares, and 2 million FTS shares. Conversely, the fund is expected to sell approximately 4.29 million EVF shares.
Most other stocks in the portfolio are sold to reduce their proportions, with VIX being the largest seller at 8.89 million shares; VND sold 4.19 million shares; NVL sold 3.6 million shares, and the remaining stocks sold a few hundred to a few thousand shares.
For the MarketVector Vietnam Local Index, based on data updated on August 27th, SSI Research makes the following predictions: No new stocks will be added to the index basket.
EVF may be removed for failing to meet the free-float market capitalization requirement. Assuming the above changes, the index portfolio will comprise 45 stocks. The total value of the VanEck Vectors Vietnam ETF’s assets as of August 27th amounted to VND 12,438 billion (USD 500 million). Specifically, the total asset value of the fund decreased by -5.1% compared to the beginning of the year, NAV decreased by -2.7% compared to the beginning of the year, and net outflows reached -VND 316 billion (USD 12.7 million).
During this evaluation period, it is estimated that the VanEck Vectors Vietnam ETF will sell approximately 8.3 million EVF shares. Additionally, many other stocks will be sold, such as 1.6 million HUT shares, 2.5 million VIX shares, 3 million VI shares, and 2.3 million VHM shares.
Conversely, most of the remaining stocks will be purchased, including 2.67 million HPG shares, 3.69 million VND shares, 3.87 million VRE shares, 3.2 million POW shares, 1.9 million PDR shares, and 2 million SBT shares.
In summary, KDH is the stock that the two funds are expected to buy the most, with nearly 6 million shares, followed by VRE with 3.8 million shares and POW with 3.2 million shares.
Previously, BSC predicted that the FTSE Vietnam Index (referencing the FTSE ETF) would add FRT and FTS stocks and not exclude any stocks.
The FTSE ETF will buy 637,000 FRT shares, increasing its weight to 1.64%, and purchase 1.9 million FTS shares, raising its weight to 1.14%. Several other stocks will also be bought additionally, including 2.47 million VND shares, 7.09 million VIC shares, 2.9 million VNM shares, and over 2 million NVL and SHB shares each.
Conversely, the fund will sell the most, 16.2 million HPG shares; VIX will be sold, resulting in a loss of 7.2 million shares. Additionally, 3.1 million VRE shares, 2.9 million MSN shares, 1 million DXG shares, and 1.25 million KBC shares will be sold.
Regarding the MarketVector Vietnam Local Index (referencing the VanEck Vectors Vietnam ETF), the MarketVector Vietnam Local Index is expected to exclude HNG stock and add NAB, FRT, and MBS stocks.
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