FMIC completes listing of Exchange Traded Fund

MANILA, Philippines - The Metrobank Group’s First Metro Investment Corp. (FMIC) has completed the listing of the country’s first Exchange Traded Fund (ETF).

New investment product ETF broadens the choice for both retail and institutional investors, particularly at a time when the stock market is expected to continue posting growth, officials said.

Share price of First Metro Philippine Equity Exchange Traded Fund Inc. (FMETF) rose 0.81 percent to P100 from P99.20, with turnover value at P63.78 million. ETFs are securities and investment instruments that monitor a commodity of assets like an index fund but trades like a normal stock in an exchange.

FMETF’s indicative net asset value (iNAV) that tracks the bellwether index rose 0.21 percent to P99.41. In contrast, the benchmark Philippine Stock Exchange index (PSEi) picked up 0.23 percent or 14.55 points to 6,223.37.

“The active volume after the listing is an indication people are excited about the new product,” said FMIC president Roberto Juanchito T. Dispo.

“Rather than buying 30 stocks on your own, retail and institutional investors can buy the FMETF,” Dispo said.

FMETF tracks the 30 blue-chip stocks of the PSEi. FMIC initially listed with a capitalization of P750 million, which can be jacked up to P3 billion.

Dispo said the entire P3 billion will likely be used up early next year given robust demand from both retail and institutional investors.

The launching of ETF is monitored by and will build up the ETF demand in the Southeast Asian region, said Daniel Videtto, Asia Pacific managing director of Interactive Data Corp., which calculates FMETF’s iNAV.

“ETF raises funds and injects liquidity into the market. Proceeds will be used to buy secondary shares,” said Ismael Cruz, president of brokerage firm IGC Securities Inc.

The launch of the country’s first ETF comes at a time when the market is still on an uptrend despite several pullbacks.

“The timing could have never been so kind and perfect,” Dispo said. “We are briging into the market the first ETF at relatively lower values. It provides a good opportunity for investors to get into the market,” he added.