Philippine ETFs by First Metro Investment Corporation

(Photos from fami.com.ph)

The Philippines' first ever ETFs or Exchange Traded Funds are to be listed today in the market.

Exchange traded funds are like index-tracking mutual funds that can be purchased through the stock market. They can be bought by buying common shares of the said fund in the exchange.

ETFs have gained popularity in the US in the mid-90s starting with index-tracking funds and have since evolved into endless varieties to include ETFs for precious metals, various asset classes, industries, countries and regions.

This is a huge first step for the development of our financial markets, and shows resilience of the Philippine industries and its people.

In a nutshell, exchange-traded funds, as the term implies, are a basket of securities such as mutual funds that are traded in the stock exchange like a stock. This is designed to track the (PSEi) or Philippine Stock Exchange Index.

First Metro Investment Corporation also runs traditional mutual funds, through First Metro Asset Management. This time, they are launching the country's first mutual funds that can be bought and sold in the stock exchange, the exchange-traded funds or ETFs.

For more information about ETFs, please read the following links:

Primer to Exchange-Traded Funds: http://fami.com.ph/wp-content/uploads/2013/11/First-Metro-ETF-Primer-for-web.pdf

Quick Info:

[source official Summary of Terms and Conditions]

Listing of 30 million (30,000,000) shares

Listing date: December 2, 2013, Monday

Par value of P100 per share

Net Asset Value Per Share (NAVPS) is P99.20

Listing Price: P99.20 per share

Minimum board lot: 10 shares

The Fund is a duly authorized corporation, incorporated on January 15, 2013.

Intra-day Net Asset Value (INAV) of the fund will be calculated at one (1) minute intervals during trading hours of the PSE, updated and disseminated periodically throughout the day through the fund's website and the website of the PSE.

Source: http://www.pse.com.ph/resource/memos/2013/LA_IPO_2013-0448.pdf

Traditionally, ETF prices shouldn't deviate much from actual value or the NAVPS as indicated here in the PSE website.