The Operating Mechanism of the BeQ Vietnam VNX Superstar Index

If investors require news headlines to take action, they are no longer positioned alongside large capital flows.

In index-based investing, buy and sell decisions are not made at the moment information becomes public, but well before that—when predefined rules and eligibility criteria already dictate how institutional capital will move.

The BeQ Superstar Index was developed to address this structural gap.
Rather than reacting to short-term news events, the index focuses on positioning ahead of mandatory index-driven capital flows, before passive and institutional investors are compelled to act.

This article examines the operating framework of the BeQ Vietnam VNX Superstar Index—the core reason why the index is designed to move ahead of the market, rather than chase publicly available information.

To understand the BeQ Superstar Index, it is essential to begin with a fundamental reality:

ETF and index-tracking funds do not “select stocks.” They follow rules.

These funds:

• do not buy based on short-term expectations,
• do not invest based on narratives or market stories,
• invest because securities meet predefined index eligibility criteria.

When a stock is added to an index:

• funds are required to buy,
• regardless of valuation levels,
• regardless of individual portfolio managers’ views.

The challenge is that by the time official announcements are released, the market has often already priced in the change. Investors who react after the news frequently find themselves chasing prices rather than positioning ahead of flows.

The BeQ Vietnam VNX Superstar Index was created specifically to address this structural inefficiency.

Rather than responding to official index review announcements, the BeQ Vietnam VNX Superstar Index is constructed around:

• FTSE upgrade criteria and international index standards,
• requirements for market capitalization, liquidity, and free float,
• and the rebalancing behavior of index-driven capital.

In other words, the BeQ Superstar Index does not attempt to forecast events.
It aligns with the rules governing capital allocation.

This approach allows the index to focus on the probability of future index-driven buying, rather than waiting for formal confirmation after flows have already occurred.

The BeQ Vietnam VNX Superstar Index is deliberately selective.

The index concentrates on companies that:

• are sufficiently large for institutional capital participation,
• offer adequate liquidity to absorb ETF inflows,
• and meet criteria that place them within the radar of global index providers.

Instead of identifying stocks that may “rise the fastest,” the index seeks:

• stocks with a high likelihood of being purchased by index-tracking capital in the future.

This disciplined selectivity defines the structural differentiation of the portfolio.

Between the period of “no official news” and “formal index announcement,” there exists a critical phase: capital positioning.

During this phase:

• market expectations begin to form,
• informed capital positions in advance,
• prices gradually reflect the probability of index inclusion.

The BeQ Vietnam VNX Superstar Index is designed to focus precisely on this positioning window, rather than remaining on the sidelines awaiting confirmation.

As a result, the index is often:

• already positioned advantageously,
• before ETFs and index funds execute mandatory purchases.

A common misconception is that:
“Positioning ahead of capital flows inherently increases risk.”

In reality, risk arises not from early positioning, but from the absence of an adaptive adjustment mechanism.

The BeQ Vietnam VNX Superstar Index applies a monthly review process to:

• incorporate updated data,
• remove securities that no longer meet eligibility criteria,
• ensure the portfolio remains aligned with current capital flow structures.

This process helps:

• avoid dependence on a single market narrative,
• reduce the risk of clinging to outdated assumptions,
• and preserve flexibility within the index framework.

The differentiation of the BeQ Vietnam VNX Superstar Index becomes clear when compared with traditional indices:

Table 1: Structural differences between traditional indices and the BeQ Superstar Index.

This structural distinction enables a repeatable advantage, rather than reliance on market timing or luck.

The BeQ Vietnam VNX Superstar Index is not designed for every investment style.

It is suitable for:

• investors focused on index-based strategies,
• those who prefer structured frameworks over discretionary forecasting,
• investors seeking alignment with ETF and passive institutional capital.

For investors who prioritize discipline and positioning, the BeQ Vietnam VNX Superstar Index represents a framework worthy of close consideration.

The BeQ Superstar Index is not designed for short-term trading.

It is built as a capital positioning instrument, grounded in standards, rules, and disciplined operational processes.
In markets increasingly dominated by index-tracking capital, being correctly positioned matters more than reacting quickly.

This is the core value proposition of the BeQ Vietnam VNX Superstar Index.

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