ETFs in Vietnam to focus on buying HNG, STB, HSG

By Minh Son June 14, 2021 | 06:57 pm PT

An investor points at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.

Two major exchange traded funds, FTSE Vietnam ETF and VNM ETF, will buy HNG, STB and HSG shares this week and sell HPG.

FTSE Russell, a leading global index provider, and MV Index Solutions have announced constituent changes to index series that will take effect on June 21, and so ETFs need to complete restructuring of their portfolios by June 18.

The FTSE Vietnam Index Series, which tracks the performance of firms trading on the Ho Chi Minh Stock Exchange, is a basic index set of FTSE Vietnam ETF.

Recently HSG shares of steelmaker Hoa Sen were added to the FTSE Vietnam Index while DXG of real estate firm Dat Xanh was removed.

According to SSI Securities Corporation, FTSE Vietnam Swap UCITS ETF will sell 3.6 million DXG shares and buy some 3.3 million HSG shares.

MVIS Vietnam Index, which tracks the performance of the largest and most liquid companies in Vietnam, is a basic index set of VanEck Vectors Vietnam ETF (VNM ETF).

In its June review VNM ETF added PDR of real estate firm Phat Dat, STB of lender Sacombank, VCI of securities firm Viet Capital, APH of plastic producer HSG, and HNG of agricultural firm Hoang Anh Gia Lai in the index.

MVIS Vietnam Index has 22 local shares and 14 foreign ones. VNM ETF had an asset value of US$543 million as of June 10.

Using prices on June 11 SSI estimated that the fund would buy 3.7 million PDR shares, eight million STB shares, 2.4 million VCI shares, 3.1 million APH shares, 4.3 million HSG shares, and 13.3 million HNG shares.

It will also increase its ownership of VIC of Vietnam’s biggest private company, Vingroup, VNM of dairy firm Vinamilk, VHM of real estate firm Vinhomes, and MSN of conglomerate Masan Group, while reducing holdings of most remaining stocks.

The combined ratio of Vietnamese shares is estimated to rise to 67.9 percent from 64 percent, equivalent to net buying worth $20 million.

FTSE Vietnam ETF and VNM ETF will together buy HNG, STB and HSG the most, ranging from 7.6 to 13.3 million shares.

They will sell nearly 12 million HPG shares followed by over three million shares each of NVL of real estate firm Novaland, DXG, GEX of electrical equipment producer GELEX, and POW of electricity distributor Petrovietnam Power Corporation.