Vanguard’s Investment Allocation Plans Following Vietnam’s Market Upgrade: Brokerage Insights

Following Vietnam's market upgrade, ACBS anticipates that ETFs tracking the aforementioned indices will allocate their portfolios to the Vietnamese market in accordance with their respective weightings.

0
146

According to FTSE Russell’s assessment roadmap, Vietnam is highly likely to be officially upgraded in the September 2026 review. At that time, the Vietnamese stock market will be removed from the Frontier Markets Index and added to the Secondary Emerging Markets Index. Detailed announcements will be made by FTSE after August 21, 2026.

The process of removing Vietnam from the Frontier Markets Index will occur in a single phase during the September 2026 review. Meanwhile, the inclusion of Vietnam into the Secondary Emerging Markets Index will be implemented in multiple stages, with a detailed timeline announced after the interim review in March 2026. During this assessment, Vietnam’s market will be evaluated for progress in improving accessibility for global brokerage firms, a critical factor ensuring ETFs can effectively replicate the index.

In a recent report, ACBS Securities noted that upon Vietnam’s official upgrade, several key indices will adjust to include Vietnamese stocks. Specifically, the FTSE All-World, FTSE Emerging All Cap, FTSE Emerging, and FTSE Global All Cap indices will incorporate Vietnamese equities, with projected weights of 0.02%, 0.34%, 0.22%, and 0.04%, respectively. Conversely, Vietnam will be removed from the FTSE Frontier Index due to the reclassification.

The list of Vietnamese stocks expected to be added to the FTSE Global All Cap Index will be based on corporate performance as of December 31, 2024. The official list will be announced by FTSE during the September 2026 review.

ACBS forecasts that passive funds will allocate capital to Vietnam in line with the respective index weights once the upgrade takes effect. The largest fund by assets under management (AUM) as of November 10, 2025, is the Vanguard FTSE Emerging Markets ETF, tracking the FTSE Emerging All Cap Index with an AUM of $105.5 billion. With a 0.34% allocation, this fund is expected to invest approximately $358.5 million in Vietnam.

The second-largest fund is the Vanguard FTSE All-World ex-US ETF, with an AUM of $52.4 billion. At a 0.05% weight, it is projected to allocate $26.2 million. Following closely is the Vanguard FTSE All-World UCITS ETF, with over $29.2 billion in AUM, expected to invest nearly $5.9 million in Vietnamese equities.

In summary, ACBS estimates that ETF inflows into Vietnam following the upgrade will total approximately $435.4 million.

You may also like

Industrial Real Estate Profits Surge 51% Year-on-Year: Are Opportunities Still Available?

MBS believes the industrial park sector is entering a recovery phase, with several businesses rapidly expanding their land holdings.

Egroup Case: Prosecution Recommended for Shark Thuy and 28 Suspects

The Investigative Police Agency of the Ministry of Public Security has proposed prosecuting Shark Thuy and 28 other defendants on three charges: Fraudulent Appropriation of Property, Bribery, and Receiving Bribes.

Stock Market Update November 18: Shifting Capital to Attractive Stocks Drives Investment Flow

In the November 17th session, numerous stocks demonstrated significant upward momentum. Investors are advised to focus on those tickers currently attracting substantial capital inflows.

Accelerating Reforms: Ministry of Industry and Trade Brings Resolution 66 to Life

At the online seminar titled *”The Ministry of Industry and Trade Innovates Mindsets, Breakthroughs in Legal Frameworks,”* representatives from regulatory bodies shared insightful perspectives on the implementation of initiatives and solutions outlined in Resolution 66, effectively linking the resolution to real-life applications.

Proposed Prosecution of Shark Thuy

Nguyễn Ngọc Thủy, widely known as Shark Thủy, Chairman of the Board and CEO of Egroup Corporation, is among 28 individuals facing prosecution by the Ministry of Public Security on three criminal charges.