VNM ETF sent the message: In ETF funds, there is no rule if it brings benefits and value.WHY
For the first time, MVIS open-end fund, commonly known as VanEck Vectors Vietnam ETF (VNM ETF), has a special option for its portfolio. Instead of choosing HBC of Hoa Binh, KBC of Kinh Bac or CII of Ho Chi Minh City Infrastructure Investment Company as almost experts predict, this fund decided to invest in NVL.
The reason why analysts do not think about NVL because this is a new stock listed last December last year. Actually, trading time of NVL is only over 2 months, while VNM ETF usually select stocks with trading time of at least 6 months.
As such, NVL has become the exception of VNM ETF. No one can give an accurate explanation for this decision, but with many years in researching and monitoring ETF, Nguyen Hong Diep said: “ the NVL is better than HBC, KBC, CII or GTN. For example, NVL is capitalized at nearly $ 2 billion, is in the top 10 stocks with the largest capitalization of the stock market and has a free float rate (calculated as the number of free float shares Number of outstanding shares).”
VNM ETF is the index fund, with its own rules, but sometimes they also go out of the box. Three years ago, VNM ETF unexpectedly added MSN of Masan to the list of 8% and HPG from Hoa Phat, although at that time, most securities companies assume HPG will not be eliminated. But with the FTSE fund, while no one though BHS of Bien Hoa Sugar will be on the FTSE portfolio, due to the unlisted BHS added additional shares issued, FTSE chose BHS. Mr. Diep has interpreted this story as a synthetic and FTSE regulated by four other investment funds of Deutsche Bank, so FTSE has its own trading options.
Up to now, the dynamics of ETFs has become increasing elusively. When selecting NVL for this portfolio, VNM ETF again sent the message: In ETF funds, there is no rule if it brings benefits and value.
Normally, the number of stock ticker of VNM ETF is maintained at 25. According to the VanEck selection criteria, the proportion of investment in Vietnamese shares is not lower than 70%, the rest are foreign stocks. Foreign stocks of VNM ETF include Hansae (Korea), Mani, Inc. (Japan), Eclat Textile (Taiwan), Soco International (UK), Mcnet (Korea), Donaco International (Australia) and more recently Regina Miracle (Hong Kong) have a business relationship in Vietnam. For example, Hansae is a major garment company with three subsidiaries in Ho Chi Minh City, Tay Ninh and Tien Giang. Soco International owns a stake in many of Vietnam's oil fields. Donaco International holds hotel - five star Aristo casino in Lao Cai. Regina Miracle alone is carrying out two projects in Vietnam, one in Hai Phong has come into operation and one is located in VSIP Hai Duong.
For domestic stocks, VNM ETF's portfolio is diversified in the industry and is a big influence on stock indexes such as Vinamilk's VNM, Vingroup's VIC, Vietcombank's VCB But if the VNM ETF characterizes the sale of most of the stock in the basket, with VNM, VIC, this fund will determine to buy more.
Vingroup and Novaland are all big players in the real estate industry in Vietnam. According to an analysis of ACBS Securities, Novaland has the largest land bank, with more than 600 hectares of land and a total floor area of over 10 million square meters. In the year 2016, NVL had a remarkable growth with 275% increase in after-tax profit, reaching over VND1,650 billion. This year, based on revenues from 10 major projects including Lakeview City, The Tresor, Lucky Palace, Lucky Dragon, Golf Park, Rivergate, GardenGate, Golden Mansion, Orchard Garden, Up to 2,500 billion. With this prospect, plus the support of the VNM ETF, NVL shares have continuously increased in recent sessions, nearly reaching the threshold of 80,000 VND / share, exceeding the expected price of securities companies. Previously, thanks to investment before the time of listing, the net asset value of Dragon Capital and VinaCapital in investment in Novaland also recorded an increasing 50-60%.
Source: Nhịp Cầu Đầu Tư