Le Thi Le Hang, general director of SSI Asset Management Limited Company, sounds the gong to open trading at the HCM Stock Exchange on October 24. — VNS Photo

SSIAM VNX50, an exchange-traded fund, debuted on the HCM Stock Exchange on October 24 under the code FUESSV50, becoming the second such fund to list on the bourse.

The SSIAM VNX50 ETF was formerly known as SSIAM HNX30 ETF, and was established in 2014 and listed on the Ha Noi Stock Exchange (HNX).

It is managed by SSI Asset Management Limited Company (SSIAM).

Together with the merger of the two exchanges, some large stocks in the HNX30 have moved or are about to move to HOSE, making HNX30 less attractive.

By moving from the HNX besides changing to the VNX50 as the simulation index for the SSIAM VNX50 ETF, SSIAM hopes to enhance the attractiveness of the fund.

The blue-chip VNX 50 index consists of the 50 highest ranking stocks in terms of free float market capitalisation and average daily turnover of the two markets, filtered from the VNXAllshare index basket. The 50 stocks account for 70 per cent of the total market cap.

Exchange-traded funds are passive and track an index, and do not aim for a higher rate of return than the index.

SSIAM VNX50 ETF will thus track the VNX50.

Speaking at the listing ceremony, Tran Thi Thuy Linh, deputy director of HOSE’s listing management and appraisal department, said the fund’s listing would contribute to the diversification of the Vietnamese stock market.

To Thuy Linh, deputy general director of SSIAM, said in the first nine months of this year SSIAM VNX50 achieved a return of 32 per cent. — VNS