Vietnam's prominent exchange-traded fund (ETF), the Vaneck Vectors Vietnam ETF (VNM ETF), has revealed significant adjustments to its portfolio, as the fund gears up for substantial trading activity anticipated starting on March 24, 2025. With assets nearing 11,000 billion VND, the ETF is set to add new bank stock and reduce its holdings of select stocks, particularly SHB, all the more notable as the economy continues to recover after recent fluctuations.
According to the latest announcement concerning the MVIS Vietnam Local Index—now consisting of exclusively Vietnamese stocks—the restructuring for the first quarter of 2025 includes the addition of only one new stock: Nam A Commercial Joint Stock Bank (NAB). No stocks were removed from the portfolio during this period, resulting in the total number of stocks reaching 46. This decision marks the fund's strategy to strengthen its holdings within the domestic banking sector.
By March 13, the VNM ETF had achieved a portfolio size exceeding $414 million, approximately 10,600 billion VND. With NAB now part of the mix, the ETF is expected to acquire around 8.1 million shares of SIP and significantly, approximately 3.2 million shares of HPG, demonstrating its focus on high-performing stocks. This move is aimed at enhancing the ETF’s returns as market confidence grows.
On the other hand, the fund plans to reduce its stakes across several stocks, signaling possible shifts within the market. It intends to offload three million shares of VIC and two million of VHM. Notably, the withdrawal of about 2.8 million shares of SHB indicates anticipation of lower performance from this bank stock, prompting investors to rethink their strategies.
Historically, VNM ETF underwent significant changes through the end of 2022 and the beginning of 2023, following the implementation of the MVIS Vietnam Local Index. This adjustment involved drawing substantial investments, but the fund faced near 1,500 billion VND net withdrawals throughout 2024. This trend continues well beyond, challenging fund managers to refine their portfolios to adapt to investor sentiments.
Equally important, the FTSE Vietnam Index, another major player within the Vietnamese market, recently included additional stocks like SIP, confirming the overall trend of adaptation and flexibility seen across Vietnamese ETFs. At present, this foreign fund holds assets totaling around $261 million, mainly concentrated within finance, real estate, and consumer goods sectors.
Investors closely monitoring the potential impacts of these changes are urged to be vigilant as both the VNM ETF and FTSE Vietnam ETF finalize their restructuring procedures. These adjustments will take effect after the market closes on March 21, 2025, as new trading begins on March 24, ensuring ample opportunities for diversifying portfolios.
The fluctuations within stocks like HPG, VHM, VCB, VIC, and VNM will surely become focal points for investors as they navigate the post-restructuring market environment. The careful planning by the VNM ETF presents it as both strategic and cautious, illustrating the dynamics of the Vietnamese stock market laden with growth potential.
Overall, the upcoming weeks are set to be pivotal for investors participating in the VNM ETF and broader Vietnamese markets. The decisions being made reflect not only market trends but also the broader economic climate. For stakeholders, it is not just about short-term gains; they must look at sustainable and profitable options poised for longer-term growth.