HoSE welcomes another ETF simulating index of “diamond” stocks

Monday, Aug 14, 2023 07:07

The HCM Stock Exchange (HoSE) on Friday officially put 5.1 million fund certificates of BVFVN DIAMOND ETF into the transaction. — Photo HoSE

The HCM Stock Exchange (HOSE) on Friday officially put 5.1 million fund certificates of BVFVN DIAMOND ETF into transaction.

Coded FUEBFVND, the certificates, worth a total value of VNĐ51 billion (US$2.1 million), and a reference price on the first trading day of VNĐ11,065 per certificate, with a price fluctuation range of +/-20 per cent.

This is the third ETF (portfolio exchange fund) that mimics the VN DIAMOND index on the market after the VFMVN DIAMOND ETF (FUEVFVND) and the MAFM VNDIAMOND ETF (FUEMAVND) to meet the selection needs of investors, especially foreign institutional investors. This is expected to attract additional capital flows into ETF products on Việt Nam’s stock market.

VN DIAMOND Index is announced and managed by HOSE, including a minimum of 10 and a maximum of 20 component stocks. Stocks must meet certain conditions in terms of market cap, transaction value, and foreign ownership to be included in the VN DIAMOND Index.

They should also have foreign ownership of at least 95 per cent of the limit and the remaining stake foreign investors can buy should not be worth more than VNĐ500 billion.

The market cap of individual stocks is 15 per cent of the index and any one industry must not account for more than 40 per cent.

The BVFVN DIAMOND ETF is a portfolio swap fund with no operating time limit, managed by Bảo Việt Fund Management Company Limited.

Fund founders cum distribution agents include Bảo Việt Securities Joint Stock Company, Securities Joint Stock Company of Bank for Investment and Development of Việt Nam. The custodian bank is the Joint Stock Commercial Bank for Foreign Trade of Việt Nam, the transfer agent is the Việt Nam Securities Depository (VSD).

The recent strategic report of SSI Securities Joint Stock Company showed that the investment trend in Việt Nam's ETFs in the long term remains positive, especially from foreign individual investors.

However, it should be noted that the cash flow trend of ETFs depends a lot on the psychology of individual investors. Money flow will only come in strongly when the market experience a strong correction or the market confirms a clear uptrend, the report said. —VNS

Comments (0)