Performance of stock investment funds continued to be severely negative in October, two big names lost nearly 50% since the beginning of the year

In the context of the unfavorable market, it is not surprising that most of the large institutions in the market recorded negative performance, from passive to active funds.

The stock market has just experienced a turbulent October when the VN-Index decreased by 9.2%, sometimes breaking through the important milestone of 1,000 points. Most stocks fell sharply, even many big names hit the bottom of Covid and lost tens of percent of the market price. Therefore, it is not surprising that most of the large institutions in the market have recorded negative performance, from passive to active funds.

Among the big funds listed, the heaviest loss in October was recorded at the FTSE Vietnam ETF with a negative performance of more than 15%. Following, the performance of Fubon ETF, VNM ETF and SSIAM VNFinlead ETF were also negative from 12%-13%, stronger than the decrease of two main indexes, VN-Index and VN30-Index.

Slightly more optimistic, the DCVFM VN30 ETF has the same performance as the VN30-Index while the most “positive” DCVFM VNDiamond ETF also dropped by nearly 9% in October.

In fact, passive ETFs all choose the major indexes in the market as their reference and the large weighted portfolio puts on leading stocks such as VIC, VHM, MSN, HPG, NVL, etc. SSIAM VNFinLead ETF, the portfolio is all financial stocks (banks, securities) such as MBB, TCB, STB, SSI, VND,… while Diamond ETF with MWG, FPT, PNJ, REE,… accounted for. large proportion. The market is volatile and most of the above stocks are under strong selling pressure causing the market price to fall rapidly, pushing the performance of ETFs down sharply.

Notably, the newly established fund DCVFM VNMidcap ETF with the Midcap index as a reference also suffered a negative performance of nearly 12.5% ​​in October. VNMidcap ETF’s portfolio currently records SSB, MSB, VIB, VND, DGC, LPB, REE… accounting for a large proportion.

Pyn Elite Fund, VOF VinaCapital are less bad but the performance is also negative around 10%. Thus, despite being more proactive in restructuring the portfolio, it seems that the market’s deep correction, especially in the second half of the month, still makes these investment funds unable to react.

The lowest drop was recorded at DCDS fund (managed by Dragon Capital) with a loss of more than 5% in the past month. DCDS’s portfolio includes not only stocks but also about 20% of cash and bonds. The lack of “all hands” on stocks has helped DCDS have better performance during the period of negative market volatility.

The disappointing October results continued to widen the losses of large funds since the beginning of 2022. Many investment funds such as JPMorgan VOF, SSIAM VNFinlead ETF or VEIL have lost more than 38% after 10 months, deeper than compared to the previous year. the decrease of 2 indexes VN-Index and VN30-Index. Even the famous ETF duo VNM ETF and FTSE Vietnam ETF also had negative performance of more than 45%.

Investment funds with slightly better performance such as Lion Global Vietnam Fund, KIM Vietnam Korea, VN30 ETF all lost about 32% after 10 months while the most active Diamond ETF in the group of passive funds also lost nearly 21%. .

Despite large losses, well-known funds are still more optimistic about the market’s prospects. Mr. Petri Deryng, founder and manager of PYN Eltie Fund, recently shared that he still believes in Vietnam’s stock market. He said that no macroeconomist’s report has yet been found that Vietnam’s economic outlook will be weak this decade. While the sharp correction is shocking to investors, distinguishing Vietnam’s strengths and weaknesses must be taken seriously to gain insight into what could happen in 12 months. next. An important turning point could come when the Fed indicates that the biggest rate hikes are behind. The disappearance of expectations for the next rate hike could trigger a reversal in the dollar.

He optimistically said that “there is no need to worry too much about the PYN Elite portfolio” as the fundamentals of Vietnam’s economy are still healthy and interest rate hikes only slow growth slightly. Mr. Petri Stock valuations are cheap, and the index’s reasonable levels over the next few years are well above market levels entering 2022.

Phuong Linh/Market Lifestyle