The investment scene for ETFs focused on Vietnamese banks is heating up as significant rebalancing approaches for two key indices. On March 7, 2025, the FTSE will announce its component stocks for the FTSE Vietnam All-Share and FTSE Vietnam Index, followed closely by MarketVector's announcement on March 14, 2025, for the MarketVector Vietnam Local Index. This flurry of activity culminates on March 21, 2025, when the restructuring of these ETFs will be completed.
According to the latest report from BSC, the FTSE Vietnam Index is expected to maintain its current listings without adding new stocks. Notably, the stock of TCH may face removal due to not meeting investment criteria related to market capitalization as outlined by BSC analysis.
When it boils down to the restructuring efforts, projections indicate significant buying activities, particularly for the stocks of SHB, EIB, and VNM, which are likely to see substantial additions to ETF portfolios. Specifically, BSC estimates the FTSE ETF will acquire around 21 million shares of SHB and 9 million shares of EIB, alongside selling reductions for stocks like VIX, VHM, and VIC.
For the MarketVector Vietnam Local Index (referenced by the VNM ETF), projections from BSC suggest new additions of stocks such as FPT Retail (FRT) and Viettel Post (VTP), both of which meet the requisite criteria. Conversely, the stock HDG might be eliminated from the index due to its nearing capital limit threshold.
The VanEck Vectors Vietnam ETF is poised to engage heavily with specific bank stocks, with recent forecasts indicating the fund will acquire
an impressive 34 million shares of SHB, alongside 15 million shares of EIB and notable quantities from other companies including MSN and DXG. Yet, the ETF is also expected to liquidate positions, particularly for stocks like HDG and VHM.
These investment maneuvers represent pivotal shifts within the Vietnamese banking sector, especially for SHB, which is anticipated to gain the most from this influx of ETF-driven demand. Stocks not making the cut may experience increased volatility as investors adjust their strategies.
For traders and investors alike, these developments spotlight the influence of ETF rebalancing as not just tactical maneuvers for funds but as key indicators of broader market movements within Vietnam's burgeoning financial ecosystem.
All eyes will be on March 21, 2025, when the final changes take effect, shaping the future investment climate for Vietnamese banks amid increasing interest from foreign funds.