MVIX Vietnam Local Index Announces Quarterly Rebalancing for Q2 2025

The MVIS Vietnam Local Index, the underlying index for the Vaneck Vectors Vietnam ETF (VNM ETF), has revealed its quarterly portfolio rebalancing for Q2 2025.

In this rebalancing exercise, the index has added only BAF, the stock code for BAF Agriculture Vietnam JSC, as a new component, while retaining all existing constituents. The total number of stocks in the index has increased to 46.

As of June 12, the VNM ETF’s portfolio size stood at nearly USD 412 million (approximately VND 10.7 trillion). With a weight of 0.93% in the reference basket, the fund is expected to purchase 7.5 million BAF shares.

Most of the stocks in the VNM ETF’s portfolio will see an increase in their weightings. Notably, HPG (3.2 million shares), VNM (2.2 million shares), VCB (2.6 million shares), SSI (4.6 million shares), VRE (1.9 million shares), and DGC (2.1 million shares) are expected to be among the top buys during this rebalancing period.

On the other hand, the fund will reduce its holdings in a few stocks, mainly VIC (6.5 million shares) and VHM (4.5 million shares). Additionally, the fund will also sell 0.7 million shares of GEX during this rebalancing, as these stocks have outperformed the market and exceeded their target weights in the index.

Details of the estimated VNM ETF portfolio for the Q2 2025 rebalancing are as follows:

VNM ETF’s performance since its transition to the MVIS Vietnam Local Index in March 2023.

The VNM ETF officially switched its reference index to the MVIS Vietnam Local Index, comprising 100% Vietnamese stocks, on March 17, 2023, following significant inflows during the latter part of 2022 and early 2023.

In 2024, the fund experienced net outflows of nearly USD 58 million. This trend has continued into the early months of 2025, with the VNM ETF witnessing outflows of approximately USD 58 million since the start of the year.

VNM ETF’s net asset value and share price performance since its inception.

Last week, the FTSE Vietnam Index, the reference index for the FTSE Vietnam ETF, added NVL to its constituents while removing SIP. This ETF manages nearly USD 300 million (VND 7 trillion) in assets, focusing on sectors such as finance, real estate, consumer goods, and industrials. Its top holdings include HPG, VIC, VCB, VHM, MSN, VNM, SSI, and VCI.

Both the VNM ETF and the FTSE Vietnam ETF will complete their rebalancing next week, and the new portfolios will take effect after the market closes on Friday, June 20, becoming effective for trading on Monday, June 23.

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