Standard & Poor’s Launches S&P Vietnam 10 Index
Index provides investors with tradable exposure to the Vietnam equity markets
Standard & Poor’s, the world’s leading index provider, today announced the launch of the S&P Vietnam 10 Index to provide global investors with tradable exposure to the largest and most liquid companies in Vietnam.
The S&P Vietnam 10 Index comprises 10 leading Vietnamese companies that meet size, liquidity, tradability and foreign ownership requirements. Robin Lo, Senior Director, Standard & Poor’s Index Services said: “The index will provide international investors with access and tradable exposure to the Vietnamese equity markets. The S&P Vietnam 10 Index is designed to account for foreign investment restrictions and global investors’ requirements of high liquidity and accessibility.”
Sectors represented in the S&P Vietnam Index include Consumer Discretionary, Energy, Financials, Industrials, Information Technology, Materials and Utilities. The top five holdings include FPT Corp, Petroleum Technical Services Corporation, PetroVietnam Drilling & Well, PetroVietnam Fert & Chemicals and PetroVietnam Insurance JSC.
To be eligible for inclusion in the S&P Vietnam Index, companies must have a float-adjusted market capitalization above US$ 50 million and a three-month average daily trading value above US$ 250 thousand. Each eligible stock must trade on the local Vietnam exchanges. Constituent weights are driven by liquidity, with no single stock having a weight of more than 15% in the index at reconstitution. The index is rebalanced quarterly to reflect current liquidity and foreign investment restrictions. Availability of shares for foreign investors is reviewed on a monthly basis.
For more information on Standard & Poor’s global indices, including methodology, please visit: www.standardandpoors.com/indices.
Source: Standard & Poor’s