The movements of Vietnam’s stock market in the second half of July (July 16-31) have been quite gloomy, especially after the Covid-19 news broke out in Da Nang since 24/7. The VN-Index from the area of 870 points has fallen sharply below 800 points, equivalent to a decline of more than 8% in just half a month.
In the context that the market was negatively affected by the epidemic, ETF cash flow became a bright spot when net withdrawing hundreds of billions of dong, thereby making an important contribution to support the market sentiment.
Statistics in the second half of July showed that the major ETF funds in the market such as Vaneck Vectors Vietnam ETF (VNM ETF), FTSE Vietnam ETF, VFMVN30 ETF, VFMVN Diamond ETF and SSIAM VNFin Lead ETF net withdrew capital up to 24.1 million, of which the amount poured into the Vietnamese market was US $ 21.3 million (nearly VND 500 billion).
Specifically, VNM ETF is the strongest fund to withdraw money with 9.16 million USD. The proportion of Vietnamese stocks currently only accounts for about 70% of the VNM ETF portfolio, so it is estimated that the fund has net bought 6.4 million USD of Vietnamese stocks over the past 2 weeks.
Another foreign ETF, FTSE Vietnam ETF, also net withdrew US $ 2.8 million in the second half of July. If including July, this fund net withdrew to US $ 6.3 million.
The largest domestic ETF in the market – VFMVN30 ETF after a period of strong capital withdrawal in June and the first half of July also attracted money back in the second half of the month with a value of 2.8 million USD.
Similarly, other domestic ETFs such as VFMVN Diamond ETF withdrew $ 3.2 million and SSIAM VNFin Lead ETF withdrew $ 4.3 million in the second half of July.
Statistics show that market movements are often more positive with the participation of ETFs. With the ETFs withdrawing money, the introduction of new funds such as SSIAM VN30 ETF or VinaCapital VN100 ETF is expected to support market sentiment in the context of complicated Covid-19 epidemic.