ETF Monitor-VN30 1H22 review: No changes are expected

The VN30 Index will be reviewed in January 2022 and be effective from February 7, 2022. However, VNDirect expects no changes to this VN30 index 1H22 review.

Investors are looking forward to hearing from ETF Monitor-VN30 1H22 review (Photo: Quoc Tuan)

The VN30 index lost its steam in 2021

Until December 24, 2021, the VN30 index grew 38% YTD, outperforming the VN-Index (31.8% YTD) but trailing behind other indexes. As money has poured into small and mid-cap stocks since July 2021, the VNSmallcap Index and VNMidcap Index became the best performers with 96.4% YTD and 67.4% YTD, respectively. The VNDiamond and VNFinlead rallied 57.3% YTD and 50.0% YTD, respectively.

According to VNDirect’s fund flow analysis, DCVFM VN30 ETF experienced a net outflow of approximately VND1,100bn YTD until December 24, 2021. This withdrawal could be partially explained by a fund relocation into DCVFM VNDiamond ETF in 2021.

No changes in this review

The VN30 Index will be reviewed in January 2022 and be effective from February 07, 2022. However, VNDirect expects no changes in this review as all VN30 constituents currently meet the criteria, based on its estimates.

ETFs tracks on VN30 Index, with a total net asset value of VND11,250bn (including ETF DCVFM VN30, ETF SSIAM VN30, and ETF FUEMAV30), will rebalance their portfolio on the previous trading date (January 28, 2022).

However, this stock company sees some banking stocks that would be added in the 2H22 review.

"Some banking stocks missed chances to be added to the VN30 basket in the 1H22 review, mainly due to the recent price correction, which dampened the market capitalization of these stocks. Meanwhile, current VN30 constituents are still eligible to stay in the VN30 basket", VNDirect forecasted.

However, some banking stocks would be on VNDirect’s watch list for an upgrade in 2H22 if one of these happened: VIB and SSB would rank in the top 20 largest stocks by market capitalization (currently, VIB and SSB are ranked 22nd and 24th, respectively); or any VN30 constituent would rank in the top 40 largest stocks by market capitalization (currently, KDH and PNJ are ranked 36th and 37th, respectively).