The Hanoi Stock Exchange (HNX) on December 15 officially launched HNX30Total Return Index (HNX30 TRI), which is the first-ever total returnindex calculated and introduced in Vietnam.
The Index, based onHNX30, which tracks the top 30 shares in accordance with the liquidityof the Hanoi bourse, aims to provide investors with another effectiveevaluation tool for investing in exchange-traded funds (ETFs), theexchange said in a press release.
The total return index ispopular with global index providers such as MSCI, FTSE, internationalinvestment funds and especially passive ETF investment funds because itreflects returns more accurately than a price index.
HNX TRItracks changes in the market price of the 30 stocks in the HNX30 basket,as well as follows the cash dividends of these stocks, assuming theyare reinvested in the basket following this formula: Changes in HNX30TRI = Changes in HNX30 + Effects of dividend of each HNX30 Index basketconstituent.
The calculation of the Index is made with theassumption that the dividend is available on the ex-date and reinvestedin the index basket at the end of the day preceding the ex-date. Thedividend used in this calculation method is the total cash dividends ofthe stocks in the HNX30 Index basket.
Similar to the HNX30, thereview index is annually evaluated during April and October. Anyadjustment in the basket would be made and reflected in the respectivestock price index.
The Hanoi exchange has exerted efforts todiversify products in the market by introducing many new items recently,including HNX30, ETF SSIAM HNX30 managed by SSI Fund Management Co,HNXFF-Index and HNXLarge Cap. It also presented HNX-Midcap and HNX30.-VNA
The Index, based onHNX30, which tracks the top 30 shares in accordance with the liquidityof the Hanoi bourse, aims to provide investors with another effectiveevaluation tool for investing in exchange-traded funds (ETFs), theexchange said in a press release.
The total return index ispopular with global index providers such as MSCI, FTSE, internationalinvestment funds and especially passive ETF investment funds because itreflects returns more accurately than a price index.
HNX TRItracks changes in the market price of the 30 stocks in the HNX30 basket,as well as follows the cash dividends of these stocks, assuming theyare reinvested in the basket following this formula: Changes in HNX30TRI = Changes in HNX30 + Effects of dividend of each HNX30 Index basketconstituent.
The calculation of the Index is made with theassumption that the dividend is available on the ex-date and reinvestedin the index basket at the end of the day preceding the ex-date. Thedividend used in this calculation method is the total cash dividends ofthe stocks in the HNX30 Index basket.
Similar to the HNX30, thereview index is annually evaluated during April and October. Anyadjustment in the basket would be made and reflected in the respectivestock price index.
The Hanoi exchange has exerted efforts todiversify products in the market by introducing many new items recently,including HNX30, ETF SSIAM HNX30 managed by SSI Fund Management Co,HNXFF-Index and HNXLarge Cap. It also presented HNX-Midcap and HNX30.-VNA
