BeQ Vietnam VNX Superstar Index – Positioning Ahead of FTSE Emerging Market Capital Flows

When discussing FTSE Emerging Market (FTSE EM), most market participants tend to focus on a single milestone: market upgrade.
From the perspective of BeQ Indexes, however, FTSE EM is not a news event. It is a rules-based, mandatory global capital allocation mechanism, operating under clearly defined methodologies and one that can be anticipated and positioned for in advance.

It is precisely this logic that led to the development of the BeQ Vietnam VNX Superstar Index — not to measure the market after outcomes have already materialized,
but to help investors occupy the right position before global index-based and ETF capital flows are activated along Vietnam’s equity market upgrade trajectory.

The FTSE Emerging Market Index serves as the underlying benchmark for hundreds of billions of USD in passive capital, including:

• Index-tracking ETFs
• Global institutional portfolios
• Index-based investment products

The critical point often overlooked by many investors is that:

FTSE EM capital does not have discretion over stock selection.

Capital allocation is executed strictly according to:

• 📌 Index Methodology – rules governing index construction
• 📌 Rebalancing Schedule – periodic index reconstitution timelines
• 📌 Pre-defined Allocation – predetermined weightings

As a result, the most significant impact of FTSE EM does not occur on the announcement date, but rather during the period when the market quietly repositions ahead of the forced capital flows.

As Vietnam continues to work toward meeting FTSE’s criteria on its path toward a potential market upgrade in 2025–2026, the key question is no longer whether capital will arrive, but who is already positioned correctly before that capital is deployed.

Source: FTSE Russell, Bloomberg; analysis by BeQ Research.

Historical evidence from markets such as:

• Qatar
• Pakistan
• Saudi Arabia

shows that ETF and passive capital flows increased materially after inclusion or weight upgrades within the FTSE Emerging Market Index.

These cases highlight a consistent pattern:

• Market upgrades are not single-day price events

They represent a prolonged capital reallocation process

Observations across multiple FTSE rebalancing cycles reveal a familiar pattern:

• Equity prices rarely wait for official announcements
• The most significant price movements tend to occur before FTSE disclosures
• Post-announcement price action primarily reflects residual expectations

This leads to a common paradox:

Investors may understand the FTSE mechanism correctly, yet still find themselves positioned incorrectly when the capital flows are executed.

The BeQ Vietnam VNX Superstar Index is part of the BeQ Indexes ecosystem, developed by BeQ Holdings with the objective of:

Identifying Vietnamese equities at an early stage that are most likely to become mandatory purchase targets for global indices, including:

• FTSE Emerging Market
• MSCI Emerging Market

Unlike traditional indices that:

• Record market outcomes only after prices have fully adjusted, or
• Serve merely as performance benchmarks

the Superstar Index is designed as a strategic positioning tool, enabling portfolios to:

• Move ahead of index rebalancing cycles
• Eliminate the need for speculative forecasting
• Avoid reactive, news-driven decision-making

The Superstar Index is not a standalone index.

It forms part of the BeQ Global Indexes Framework, a system comprising more than 80,000 indices developed by BeQ Holdings, spanning:

• Market Indices
• Sector Indices
• Smart Beta Indices
• Predictive Indices (capital flow–oriented indices)

Within this framework:

• BeQ Vietnam VNX Superstar Index functions as a capital-flow-leading index
• BeQ Vietnam VNX Top 10 Superstar Index represents a more concentrated version, optimized for large-scale capital and institutional strategies

👉 This index family is designed to serve as:

• Underlyings for ETFs
• Structured investment products
• Smart beta and index-based investment strategies in Vietnam

Backtest results for the BeQ Vietnam VNX Superstar Top 10 demonstrate the effectiveness of pre-positioning ahead of capital flows:

• Outperformance versus broad markets:
  As of January 2026, while the VN-Index delivered approximately 45% cumulative growth and the S&P 500 remained near 20%, the BeQ VNX Superstar Top 10 recorded over 120% cumulative growth.

• Effective capture of EM ETF inflows:
  The index’s clear performance divergence became evident during periods when Emerging Market ETF inflows strengthened to their highest levels since 2021.

• Stock selection capability (Alpha):
  Outperformance relative to major global benchmarks such as the S&P 500 suggests that BeQ’s methodology not only aligned with Vietnam’s upgrade cycle but also identified equities with optimal free-float capitalization and liquidity — the very stocks that large funds are structurally required to purchase.

BeQ Research commentary:

“The 120% performance was not the result of speculative forecasting, but of being correctly positioned in stocks with optimal free-float and liquidity characteristics — those that large institutional funds are compelled to buy once Vietnam is formally upgraded.”

BeQ Holdings did not develop the Superstar Index as a short-term product.

BeQ Indexes built it as a strategic infrastructure, designed for the era of:

• Passive capital
• ETFs and index-based investing
• Smart beta strategies
• Vietnam’s equity market upgrade process

The BeQ Superstar Index does not help investors predict the market.
It helps ensure they are standing in the right place when global capital flows are executed.

Contact BeQ Holdings for consultation
Hotline: +84 941 753 139
Email: contact@beqholdings.com