DEVELOPMENT STORY OF

VIETNAM ETFs
Contents
1. Vietnam Tracking Indices
2. Expansion of Local ETFs
3. Putting on a Scale: AUM and Liquidity
4. DCVFM ETFs: Portfolio Analysis
5. Portfolio Mgmt: Cyclical Allocation
VIETNAM TRACKING INDICES
DEVELOPMENT STORY

Tracks the performance of the 30

Measures the performance of
Represents all stocks listed and traded
on Ho Chi Minh Stock Exchange (HoSE). the large and mid cap segments
of the Vietnamese market.
The index is based on market value Current basket has 21
weighting method. constituents
HOSE VN-INDEX MSCI VIETNAM INDEX
‘blue-chip’ listed stocks with highest
market capitalization and liquidity.
Component stocks in VN30-Index
represents approx. 80% of the total
market capitalization.
HOSE VN30-INDEX
The FTSE Frontier Large Mid
Cap Vietnam Index and the FTSE
Vietnam 30 Index are parts of the
FTSE Frontier Index Series.
FTSE FRONTIER INDEX
SERIES

JUL 2000 MAY 2007 DEC 2007 NOV 2008 FEB 2012 JAN 2014 SEP 2014

FTSE VIETNAM INDEX SERIES MVIS VIETNAM INDEX

HOSE INDEX SERIES
• FTSE Vietnam All-Share Index: Tracks the performance of the
largest and most liquid companies The series includes: VN AllShare
covering top 90% of eligible universe by
incorporated in Vietnam. Index, VN30-Index, VN Midcap
market capitalization
Index, VN Smallcap Index, VN100
• FTSE Vietnam Index: covering a subset Index.
of FTSE Vietnam All-Share Index –
comprising companies that have
sufficient foreign ownership availability
3
VIETNAM TRACKING INDICES
DEVELOPMENT STORY

The MSCI Vietnam IMI Select 25-50

The series includes VNAllShare Index’s component
stocks which includes industry indexes: Energy,
Materials, Industrials, Consumer Discretionary,
Consumer Staples, Healthcare, Financials, Real
Estate, Utilities, Information Technology.
HOSE VNALLSHARE SECTOR INDEX
SERIES
The index consists of 50 top ranking
stocks in terms of market
capitalization, liquidity and free float
ratio in the VNX Allshare basket of
stocks.
VNX50 INDEX
Consisting of 30 constituents,
designed to track the largest and
most liquid companies by market
capitalization and listed in Ho Chi
Minh Stock Exchange
iEDGE VIETNAM 30 SECTOR
CAP SGD INDEX
Index is based on the MSCI Vietnam
IMI Index, its parent index, and
includes large, mid and small-cap
securities of the Vietnamese markets
MSCI VIETNAM IMI SELECT
25-50 INDEX

JAN 2016 OCT 2016 JULY 2017 JAN 2019 SEP 2019 NOV 2019 NOV 2021

VNX ALLSHARE INDEX HOSE VN SUSTAINABILITY INDEX HOSE THEMATIC INDEX SERIES
(VNSI INDEX)
The index accounts for 92% of • VN Diamond Index: component
Vietnamese stock market’s total Developed by HOSE in collaboration with the stocks are those with highest
capitalization and nearly 94% of the German Cooperation Agency (GIZ) and the proportion of foreign investment,
State Securities Commission of Vietnam.
market’s trading value. market capitalization and liquidity.

• VN FinLead and VN FinSelect Index:

component stocks are leading stocks
in the financial industry.
4
GLOBAL DEVELOPMENT
of LOCAL ETFs
Explored
- Feeder
- Synthetic Explored
- Cross listing - Feeder
- Depositary Receipt Explored
Explored - JDR
- Feeder Explored
- Synthetic - Feeder
Launch
Synthetic structure

Launch Explored
Depositary Receipt - Feeder
- Synthetic
- Depositary receipt
- Cross list

Explored
- Feeder
Explored
- Feeder
- Synthetic

THE QUEST FOR VIETNAM ETF ACCESS ON A GLOBAL SCALE

5
GAINING MOMENTUM
2016 to 2018

Vietnam ETFs Shareholding Change vs VNINDEX Performance – 2016 to 2018

1,400 1,200
% change Index point

1,200 1,100

1,000 1,000

800 VNI & ETF 900

Coinciding Growth
600
KINDEX 800
Product Launch Thai DR
Product Launch
400 700

200 Outflow in 600

Europe and US
- 500
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

DCVFM VN30 KINDEX VN30 Xtracker FTSE VanEck Vietnam VNINDEX (Right) 6
GAINING MOMENTUM
2016 to 2018

DCVFMVN30 Traded Value as % of VNI Traded Value

3.50 1,300
% Index point

1,200
3.00

1,100
2.50

1,000
2.00
VN30 ETF trading
intensifies
900

1.50
800

1.00
700

0.50
600

- 500
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
7
VN30 Traded Value Against VNI (%) VNINDEX (Right)
METAMORPHOSIS
2020 onwards

BROAD EXPOSURE THEMATIC/SECTOR

OVERSEAS ETFs
CSOP FTSE
Premia FTSE
Vietnam 30 ETF

Significant Fund Raise Dawn Asian Cubs

Global X MSCI
Fubon FTSE VN30
Vietnam ETF

Significant Fund Raise Significant Fund Raise

DCVFM VN30
VinaCap VN100 KIM Growth VN30 DCVFM DIAMOND SSIAM FIN LEAD
DOMESTIC ETFs

KIM Growth Mirae Asset

SSIAM VN30 FPT Capital VNX50 Diamond
VNFinSelect

BaoViet Fund
Mirae Asset VN30 IPA AM VN100
Diamond

DCVFM Midcap
8
From the one VN30 ETF… … to a more crowded playground
METAMORPHOSIS
2020 onwards

Vietnam ETFs Shareholding Change vs VNINDEX Performance – 2020 onwards

3,500 1,500
% change Index point
1,400
3,000

1,300
2,500
1,200

2,000 1,100

1,500 1,000

900
1,000
800

500
700

- 600
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21
DCVFM VN30 DCVFM DIAMOND SSIAM FIN LEAD SSIAM VN30 VNINDEX
Premia FTSE Fubon FTSE VN30 Asian Cubs KINDEX VN30 9
METAMORPHOSIS
2020 onwards

Select Local ETFs Traded Value as % of VNI Traded Value

8.00 1,500
% Index point

7.00 1,400

1,300
6.00

1,200
5.00
1,100
4.00
1,000
3.00
900

2.00
800

1.00 700

- 600
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21
DCVFMVN30 (% of VNI) Diamond (% of VNI) FinLead (% of VNI) VNI
10
PUTTING IT ON

A SCALE 1200
AUM vs LIQUIDITY – 30 JULY 2023
AUM ($m)

DCVFMVN FUBON FTSE

1000
DIAMOND ETF VIETNAM ETF

800

VANECK VECTORS
VIETNAM ETF
600
XTRACKERS FTSE
VIETNAM SWAP ETF
DCVFMVN30 ETF
400

KIM KINDEX
VIETNAM VN30 ETF
200

SSI FINLEAD ETF

0

Onshore Vietnam ETFs

Offshore Vietnam ETFs

-200
-2 0 2 4 6 8 10 12
ADTV ($m)

11
 OFFSHORE VIETNAM ETFs

ETFs Index Launch Listing AUM ($m) YTD Returns* (%)

Fubon FTSE Vietnam ETF FTSE Vietnam 30 Index Apr-21 TWSE 931.93 19%
THE PLAYGROUND

VanEck Vectors Vietnam ETF MarketVector Vietnam Local Index Aug-09 CBOE 619.9 23%

Xtrackers FTSE Vietnam Swap ETF FTSE Vietnam Index Feb-08 Multiple 395.0 19%

KIM KINDEX Vietnam VN30 ETF Synth

HOSE VN30 Index Jul-16 KRX 218.9 18%
Fund

Premia MSCI Vietnam ETF MSCI Vietnam Index Jul-19 SEHK 18.0 14%

Asian Growth CUBS ETF Fund Active management Jun-21 NYSE 10.3 2%

GlobalX MSCI Vietnam ETF Fund MSCI Vietnam IMI Select 25/50 Index Jul-21 NYSE 7.7 21%

CSOP FTSE Vietnam 30 ETF FTSE Vietnam 30 Index Sep-22 HKEX 3.8 19%

* As of 30 Jul 2023
Dragon Capital – Vietnam ETFs 12
 ONSHORE VIETNAM ETFs
YTD Returns* 2022 Returns 2021 Returns
ETFs Index Launch AUM ($m)
(%) (%) (%)

DCVFM VN Diamond ETF HOSE VN Diamond Index Apr-20 882.9 19.2% -23.4% 67.9%
THE PLAYGROUND

DCVFMVN30 ETF HOSE VN30 Index Aug-14 368.6 23.1% -35.9% 45.4%

SSI VNFinLead ETF HOSE VN Finlead Index Jul-20 186.5 31.9% -37.1% 65.7%

Mirae Asset VN30 ETF HOSE VN30 Index Dec-20 16.4 22.5% -36.4% 44.9%

KIM Growth VN30 ETF HOSE VN30 Index Jan-22 13.6 22.4% -36.8% N/A

VinaCapital VN100 ETF HOSE VN100 Index Jun-20 12.2 22.4% -36.3% 45.8%

KIM Growth FinSelect ETF HOSE VN FinSelect Index Nov-22 12.2 26.7% N/A N/A

Mirae Asset Diamond ETF HOSE VN Diamond Index Mar-23 9.1 N/A N/A N/A

SSI VNX50 ETF VNX50 Index Nov-14 6.5 23.7% -40.0% 51.6%

SSI VN30 ETF HOSE VN30 Index Jun-20 4.9 22.0% -37.1% 47.2%

DCVFM VNMidcap ETF HOSE VN Midcap Index Sep-22 4.0 26.4% N/A N/A

IPAAM VN100 ETF HOSE VN100 Index Oct-21 2.1 21.0% -37.1% N/A

FPT Capital VNX50 ETF VNX50 Index Jun-23 0.3 N/A N/A N/A

* As of 30 Jul 2023
Dragon Capital – Vietnam ETFs 13
DRAGON CAPITAL ETFs
VN30 ETF DIAMOND ETF MIDCAP ETF
TOTAL NAV VND8,996.7b (US $379.8m) TOTAL NAV VND21,238.9b (US $896.6m) TOTAL NAV VND 106.4 b (US $4.5m)

NAV PER SHARE VND21,143.9 (US $0.9) NAV PER SHARE VND 26,678.7 (US $1.1) NAV PER SHARE VND 10,230.7 (US $0.4)

PE Ratio (x) 12.6 PE Ratio (x) 10.9 PE Ratio (x) 13.7

PB Ratio (x) 1.8 PB Ratio (x) 1.9 PB Ratio (x) 1.5

Dividend Yield (%) 2.0 Dividend Yield (%) 1.9 Dividend Yield (%) 1.8

Beta (vs VNI) 1.10 Beta (vs VNI) 1.06 Beta (vs VNI) 1.13

Standard Dev. (%) 23.0 Standard Dev. (%) 23.5 Standard Dev. (%) 25.0

SECTOR EXPOSURE SECTOR EXPOSURE SECTOR EXPOSURE

Brokers, Utilities, 0.6% Consumer Energy, 1.3%
2.4% Insurance,
Materials, 0.1% Cash&Others, 1.5% Utilities, 1.4% Durables &
Cash&Others, 1.8%
0.3% Transportation, Apparel, 0.9%
Cash&Others Transportation,
Energy, 1.2% , 6.9%
6.1% 5.1% Software & Services, 0.6%

Transportation, Real Estate, Retailing,

2.2% 3.9% 4.8%
Banks, 31.0%
Diversified Banks, 42.2%
Diversified Banks, Diversified
Financials,
4.4% Financials, 38.4% Financials,
6.5% 6.9%

Materials,
7.1% Brokers,
7.3%

F&B, 6.0% Software &

Services,
F&B, 5.4%
15.6%
Software &
Services, Real Estate,
7.2% 18.0%
Retailing, Real Estate, Materials, 14
Capital
4.6% 15.0% Retailing, 9.5%
Goods, 5.8%
27.9%
 PORTFOLIO ANALYSIS: VN30 ETF

VN30 ETF Total Returns vs VNI Total Returns (% VND)

As of 31 July 2023
80.0
% %
14.0 13.0
70.0

60.0

10.0 9.3 50.0

40.0

VN30 TR – 23.9%
30.0
6.0

VNI TR – 22.3%
20.0

3.6 2.1
10.0
1.4 1.7 3.1 3.0 3.4
2.0 1.2
0.5 0.6 0.8 0.0
0.4 0.1 0.0 0.1 -0.2 0.2 0.2

0.0
-10.0
-0.4
-2.0 -20.0
Banks Consumer Energy Financial F&B Insurance Materials Real Estate Software & Transportation Utilities
Discretionary Services Services

Contribution to Returns - VN30 (%) (Left) Contribution to Returns - VNI (%) (Left) VN30 Total Returns (%)
VNI Total Returns (%) Sector Returns - VN30 (%) (Right) Sector Returns - VNI (%) (Right)
15
PORTFOLIO ANALYSIS: DIAMOND ETF

Diamond ETF Total Returns vs VNI Total Returns (% VND)

As of 31 July 2023
50.0
13.0 % %

10.4 40.0
9.3
9.0
30.0

VNI TR – 22.3%

4.5 Diamond ETF TR – 21.3% 20.0

5.0 4.4

3.2 3.4

1.8 10.0
1.1
1.0 0.5 0.4 0.6
0.0 0.1 1.5 0.2
0.0
-1.3

-3.0 -10.0
Banks Capital Goods Consumer Consumer Durables Materials Real Estate Software & Services Transportation
Discretionary

Contribution to Returns - Diamond ETF (%) (Left) Contribution to Returns - VNI (%) (Left) Diamond ETF Total Returns (%)
VNI Total Returns (%) Sector Returns - Diamond ETF (%) (Right) Sector Returns - VNI (%) (Right)
16
PORTFOLIO ANALYSIS: MIDCAP ETF
Midcap ETF Total Returns vs VNI Total Returns (% VND)
As of 31 July 2023
90.0
% %
10.0 9.3 80.0

70.0

60.0
5.9
6.0 5.4 50.0
4.9
4.4
40.0
3.4
Midcap ETF TR – 27.1% 30.0
2.9 3.1
2.0 VNI TR – 22.3% 1.4 20.0
1.8 1.7
0.6 0.6 0.8
0.4 0.5 1.1 0.3
0.2 0.1 0.0
0.1 0.1 0.2 0.2 10.0

-0.5 0.0

-2.0 -10.0
Banks Capital Goods Consumer Consumer Energy Financial F&B Materials Real Estate Software & Technology Transportation Utilities
Discretionary Durables Services Services

Contribution to Returns - Midcap ETF (%) (Left) Contribution to Returns - VNI (%) (Left) Midcap ETF Total Returns (%)
VNI Total Returns (%) Sector Returns - Midcap ETF (%) (Right) Sector Returns - VNI (%) (Right)
17
 PORTFOLIO MGMT:
CYCLICAL ALLOCATION

Source: HSBC Global Asset Management

Dragon Capital – Vietnam ETFs 18
 VN-Index Monthly Turn-over
800,000
LIQUIDITY RECOVERY 691,714
635,607

600,000 525,892

440,752 420,742
VND bn 385,578
304,443
340,645 358,242
accompanied by Local Retail

400,000 449,623
269,801 245,509
256,336
212,895
200,000 244,220
170,427

-
Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23

Turn-over by Client Type

100%

80%

60%

87.0% 83.0% 86.0% 89.0% 87.0% 88.0% 85.0% 86.0% 86.0% 87.0%
40% 82.0% 82.0% 82.0% 77.0% 82.0% 80.0%

20%

0%
Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23

Local Individuals Foreign Individuals Local Institutions Foreign Institutions

19
 VN-Index Monthly Turn-over
800,000
691,714
635,607

600,000 525,892
440,752
420,742
VND bn 385,578
304,443
400,000 340,645 358,242 449,623
269,801 245,509
256,336
212,895
200,000 244,220
170,427

-
Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23
..as Mid Cap

Turn-over by Market Cap Group

100%
dominates Turn-over

80%
20.4% 22.3% 46.5%
28.3% 39.5% 41.5%
60% 42.0%
28.0% 33.7% 39.8% 41.6% 46.3% 48.0%
36.3% 36.8%
40.0%
40%
48.0% 59.6% 58.0%
45.7% 46.1% 44.2% 38.2%
20% 41.5% 37.0% 36.4% 39.7% 37.7% 41.7%
30.5% 34.2% 33.6%

0%
Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23

VN30 VNMID VNSML & Others

20
 A LOOK INTO VIETNAM:
HISTORICAL CYCLES
GDP Growth VN-Index
10.0 1600
% Index Point

1400
8.0
1200

6.0 1000

800
4.0
600

2.0 400

Dragon Capital – Vietnam ETFs 21

 A LOOK INTO VIETNAM:
PERFORMANCE BY MARKET CAP
VN30 vs VNMID INDEX PERFORMANCE IN RISK-ON CYCLE
400 160
% %

350 150

300 140

250 130

200 120

150 110

100 100
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 1 2 3 4 5 6 7 8 9 10
Number of months in bull cycle Number of months in bull cycle
VN30 2014 - 2018 VNMID 2014 - 2018
VN30 2020 - 2022 VNMID 2020 - 2022 VN30 2022 - Present VNMID 2022 - Present
22
CROSS-CHECK:
US MARKET S&P 500 vs S&P MIDCAP PERFORMANCE IN BULL CYCLES

1990 - 2000 2002 – 2007

500
% 240 %
450

220
400

200
350

Return

Return
180
300

250 160

200 140

150 120

100
100

56
11
16
21
26
31
36
41
46
51

61
66
71
76
81
86
91
96
1
6

111
101
106
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61
Number of months in bull market Number of months in bull market

S&P 500 1990-2000 S&P MID 1990-2000 S&P 500 2002-2007 S&P MID 2002-2007

23
CROSS-CHECK:
US MARKET S&P 500 vs S&P MIDCAP PERFORMANCE IN BULL CYCLES

2009 – 2020 2020 - 2021

500 200
% %
190
450

180
400
170

350
160

Return

Return
300 150

140
250

130
200
120
150
110

100 100
13

43

73
19
25
31
37

49
55
61
67

79
85
91
97
1
7

103
109
115
121
127
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Number of months in bull market Number of months in bull market

S&P 500 2009-2020 S&P MID 2009-2020 S&P 500 2020-2021 S&P MID 2020-2021

24
INVEST IN VIETNAM
USING ETFs
Strategic vs Tactical
► Large Cap ETFs allocation as beta play for
market exposure
► Large Cap ETFs as core component of Vietnam
portfolio
► Tactical allocation in thematic/sector ETFs to
generate alpha
Instrument and Index Analysis
► Understanding of ETFs features and issuers’
quality and operations
► Analysis of ETFs’ market cap and liquidity
► Analysis of ETFs’ premium and discount
Dragon Capital – Vietnam ETFs
Beta across Cycles
► Allocation according to business/economic
cycle to amplify portfolio efficiencies
► Core beta allocation is still recommended for
risk management
ETFs Best Execution
► Avoid placing large bids on the exchange &
place bids in moderate quantities
► Avoid placing bids in the ATO & ATC sessions
► Trade directly with brokers on larger quantities
25
ขอบคุณ
26
Disclaimer
We have been invited to provide general information to your group on Vietnam, and we are
not providing any advice, investment or otherwise, on the case for Vietnam. We make no
recommendations in this respect, and, specifically, do not recommend any particular product
or other investment. We are providing information in good faith and believe it to be accurate,
but make no guarantees or representations about this. Anyone considering investing in
Vietnam should carry out their own assessment of the suitability for themselves based on
their own research and personal situation, and subject to the laws of Thailand and any other
jurisdiction applicable to you individually. We do not accept any liability, on any basis, to any
person attending this seminar.