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PHU HUNG FUND MANAGEMENT (PHFM) LAUNCHES PHFM VNSHINE ETF: “A NEW BREEZE” FROM SMART BETA STRATEGY

Posted on by Khoa Truong

PHU HUNG FUND MANAGEMENT (PHFM) LAUNCHES PHFM VNSHINE ETF: “A NEW BREEZE” FROM SMART BETA STRATEGY

Phu Hung Fund Management Joint Stock Company (PHFM) has officially received approval from the State Securities Commission of Vietnam to conduct a public offering (IPO) of fund certificates for the PHFM VNSHINE ETF Fund. The emergence of PHFM VNSHINE ETF is expected to bring a sustainable investment option based on the genuine financial health of businesses.

In the context of Vietnam’s stock market being upgraded to a secondary emerging market, ETF capital flows have become an indispensable part of the investment ecosystem. However, reliance on traditional market-capitalization-weighted indices sometimes exposes investors to risks during periods of strong market volatility. Against this backdrop, Phu Hung Fund Management (PHFM) has officially entered the ETF race with a distinctive strategy: Smart Beta.

Overcoming the “weaknesses” of traditional indices

Unlike traditional indices that prioritize market capitalization, PHFM VNSHINE ETF operates based on the ruleset of the “Vietnam Shareholder Interest Enhanced Index” issued by the Ho Chi Minh Stock Exchange (HSX). Accordingly, the fund’s portfolio will comprise 15 to 30 stocks strictly screened from the VNAllshare basket.

A representative from PHFM stated that in an environment of strong capital inflows, traditional indices are prone to risk as they are forced to buy into stocks that are already overvalued. PHFM VNSHINE ETF was created to deliver a smarter strategy, combining quantitative screening and fundamental analysis to build a portfolio with superior defensive capabilities.

“Shareholder Yield” – When Cash Speaks

The core of PHFM VNSHINE ETF is the concept of “Shareholder Yield” – a strategy that has proven effective in developed financial markets. This strategy focuses on 3 key defensive and growth pillars:

  • Optimizing Cash Dividends:Prioritizing companies with stable cash distribution policies for investors.
  • Controlling Share Dilution:Eliminating companies that abuse capital increases, thereby preserving the interests of existing shareholders.
  • Restructuring and Debt Reduction:Focusing on companies with a tendency to reduce financial leverage in order to lower interest costs and increase cash repayment capacity.

In explaining the choice of “Cash” as the benchmark, PHFM noted that real data in Vietnam shows that up to 41% of listed stocks have a post-audit EPS deviation of more than 1% due to differences between accounting standards. Meanwhile, cash-related line items are always more transparent and harder to manipulate, enabling the fund to effectively filter out noise in financial reports.

Evidence from Real-World Performance

Empirical data from May 2020 to January 2026 has demonstrated the overwhelming advantage of this strategy:

  • Superior Returns:Total return reached 229%, far outpacing the VN-Index’s growth of 140%.
  • Risk Resilience:During the highly volatile year of 2022, the VNSHINE portfolio declined by only -27.1%, significantly lower than the market’s drop of -32.8%.
  • Sound Financial Structure:The portfolio’s debt ratio stood at just 7%, while the broader market reached 70.0%.

PHFM noted that the PHFM VNSHINE portfolio carries an average debt ratio of only 44.7%, significantly lower than the market average of 70%, along with a Sharpe ratio of 1.06. This demonstrates that the fund not only targets capital growth but also optimizes investment efficiency per unit of risk – making it a noteworthy choice for investors pursuing a stable and long-term investment strategy.

The fund is established and managed by Phu Hung Fund Management Joint Stock Company. Founding members include: HSC Securities, Mirae Asset Securities (Vietnam), Phu Hung Securities (PHS), VietCap Securities, Bao Viet Securities (BVSC), OCBS Securities, and Finhay Securities. Custodian Bank: Bank for Investment and Development of Vietnam (BIDV) – Nam Ky Khoi Nghia Branch.

The IPO period runs from May 22, 2026 to June 22, 2026. Following the IPO, fund certificates will be listed on the Ho Chi Minh Stock Exchange and traded like a listed stock.