PSX marks launch of fifth ETF in gong ceremony

KARACHI: Pakistan Stock Exchange (PSX) held a gong ceremony to officially mark the launch of JS Momentum Factor Exchange Traded Fund (JSMF-ETF), which is the fifth ETF in the bourse, a statement said on Friday.

“JS Momentum Factor ETF, which does not track a market-capitalisation based index, is a valuable addition on the ETF sector of the bourse for attracting retail and institutional investors,” said Farrukh Khan, managing director at PSX, while congratulating JS investments on launching the new ETF. Khan added that ETF is an important product in global capital markets and he was stirred to see new and innovative ETFs being launched on PSX.

“Globally, ETFs command a large asset base worth over $9 trillion. It is an exciting development that we have the fifth ETF listed on PSX.”

He urged brokers and AMCs (asset management companies) to produce research and educate investors about the investment product, envisaging that it would add depth and liquidity to the market whilst presenting a suitable investment option for investors who want to diversify their portfolios cost-effectively. ETFs also allow savvy investors to focus on specific sectors or attributes of the market, he added. Speaking at the launch, Ms. Iffat Mankani, CEO of JS Investments, said JSMF-ETF was the country’s first smart beta exchanged traded fund, adding that the initiative would pave the way to a durable investment style, who could display both actives and passive investment management features.

She explained that the Fund follows a factor investing approach that tilts exposure towards factors in a rules-based portfolio-building process that systematically selects, weights, and rebalances portfolio holdings based on factors or characteristics versus a market capitalization approach. Some of the examples of the factors are dividend yield, value defined by low P/E (price-earnings) ratios of P/B multiplier (price to book), she added.