What is the VN30 Equal Weight Index?
It’s a stock market index that tracks the performance of the top 30 largest and most liquid stocks traded on the Ho Chi Minh Stock Exchange in Vietnam.
Where have you heard about the VN30 Equal Weight Index?
It’s officially published on the S&P Dow Jones website, and is the first Vietnam-orientated index to be affiliated with the Dow. Vietnam isn’t yet on the radar of most investors, but could be an exciting prospect as stocks are cheap and exports could grow rapidly as many Chinese manufacturing companies look to set up bases there.
What you need to know about the VN30 Equal Weight Index.
Unlike most indices, which are market cap-weighted, constituents in the VN30 are equal-weighted to help investors deal with liquidity and state-owned enterprise constraints when investing in Vietnam.
The selection of the constituents is based on three main criteria - market capitalisation, liquidity and free-float ratio. The index is reviewed every January and July, with constituents removed if they no longer meet the required criteria.