Local VFMVN Diamond ETF enlarges in its first trading week

Tuesday, May 19, 2020 15:55

The view of the Ho Chi Minh Stock Exchange (HoSE). The local exchange-traded fund VFMVN Diamond ETF debuted on HoSE on May 12. — Photo baodautu.vn

The value of local exchange-traded fund VFMVN Diamond ETF has increased five-fold during its first trading week to VND482.3 billion (US$20.87 million).

The ETF debuted on the Ho Chi Minh Stock Exchange on May 12, mimicking the VN Diamond, one of the three new indices together with VN Fin Lead and VN Fin Select introduced by the southern bourse in November 2019.

The fund started trading with 10.2 million certificates, worth VND102 billion. In the first week, the fund issued nearly 30 million certificates worth VND360 billion.

VFMVN Diamond ETF is tracking stocks of 14 companies which 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 VND500 billion ($21.5 million).

The stocks include Vietinbank (CTG), tech group FPT (FPT), retailer Mobile World Investment (MWG), Techcombank (TCB) and VPBank (VPB).

FPT, MWG, VPB and TCB are the four heavyweights in the fund’s portfolio, accounting for 11.73-14.96 per cent of the fund’s total value.

The growth of the ETF has proven its attractiveness to investors and strengthens the recovery of the local stock market after it was hit by the spread of the coronavirus since early February.

Among other active local ETFs, SSIAM VNFin Lead ETF managed by SSI Securities’ asset management arm SSIAM has drawn VND250 billion since its debut on March 18. — VNS

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