The largest exchange-traded fund (ETF) on the Vietnamese stock market, with total assets reaching 14,800 billion VND, is preparing for a significant portfolio restructuring.
The FTSE Vietnam 30 Index, which the Fubon ETF is currently following, will conduct its quarterly review for Q1 2025, and the final restructuring is expected to be completed by March 21, 2025. Recent forecasts from BSC Securities suggest potential changes to the ETF’s composition could see the addition of VPI (CTCP Đầu tư Văn Phú – INVEST) stock, which enthusiasts anticipate will provide fresh opportunities for investors.
On the flip side, DIC Corp (DIG) stock may face removal from the index. This adjustment follows scrutiny of DIC Corp’s disappointing financial performance, reflected by its 2024 report indicating it only achieved 57% of its revenue target and 16% of its projected profit targets.
Significantly, the Fubon ETF currently holds HPG at the highest proportion of 10.47%, amounting to 56 million shares, followed by VIC with 29 million shares (10.3%), VHM with 31 million shares (10%), and VCB at 20 million shares (9%).
According to BSC Research, there is speculation the Fubon ETF may acquire nearly three million shares of VPI, contrasting with the potential sale of more than six million shares of DIG.
Further evaluations from various analysts, including Mr. Nguyễn Vũ Luân of VNDirect Securities (VNDS), reveal strong selling pressures, particularly directed toward the real estate and securities sectors from both FTSE ETF and VNM ETF, following their respective Q1 2025 reviews.
The analysis indicated both funds are expected to net sell substantial quantities of securities: VIC (3.2 million shares), VHM (2.5 million shares), DXG (1.3 million shares), VIX (over 1 million shares), and STB (over 1 million shares).
On March 7, 2025, FTSE Russell announced updates to its asset listings, confirming SIP stock would be added to the FTSE Vietnam Index without any removals, maintaining investor confidence. By the same review, the VNM ETF also added NAB (Nam Á Bank) to its portfolio, with no stocks being eliminated. Notably, the VNM ETF manages assets amounting to 414 million USD, cementing its status as one of the largest entities comparatively.
This relevant data aligns with expectations of potential acquisitions, including notable quantities of NAB stocks (8 million shares), alongside other investments such as HPG (3.2 million shares) and VRE (1.2 million shares), all driven by favorable market conditions and investor sentiment.
Both the VNM ETF and FTSE Vietnam ETF are scheduled to finalize their portfolio restructuring by March 21, 2025, after which new portfolios will be effective post-market closure and officially available for trading by March 24, 2025.
Despite the promising restructure, DIC Corp is grappling with financial challenges. The company's 2024 results indicated not only significant underperformance, hitting figures of 1,315 billion VND and 165 billion VND for revenue and profit, respectively, but also marked the fourth consecutive year of unmet financial goals.
Throughout 2024, DIC Corp struggled as previous profit projections of up to 1,900 billion VND were drastically missed, achieving merely 10% of its goal. Squaring off against this discouraging backdrop, the corporation was also forced to dissolve various branches, including one located at the Vĩnh Phúc Development Area on March 3, 2025.
Overall, as the focal date of March 21, 2025, approaches, it will not only signal changes to the ETFs but also give investors insight on how these adjustments align with overall market performance, especially for companies exhibiting high volatility such as DIC Corp and others within the real estate sector.
Decisively, the coming weeks promise significant alterations within the Vietnamese financial ecosystem, with investors keeping alert for developments influencing trade strategies related to the larger ETF market dynamics.