KARACHI: The Pakistan Stock Exchange (PSX) launched two Exchange Traded Funds (ETFs) on Tuesday.

With this, the PSX has joined the list of stock exchanges in the world that offer ETFs - investment products combining returns offered by the bourse with the diversity of a mutual fund, the Exchange said in a statement.

“PSX has launched two ETFs, namely the UBL Pakistan Enterprise ETF offered by UBL Funds and NIT Pakistan Gateway ETF offered by National Investment Trust”.

Securities and Exchange Commission of Pakistan Chairman Aamir Khan said the introduction of ETFs was a big leap for the asset management industry and PSX as the product offered significant growth potential due to its transparent nature, low cost and embedded ability to track the index by following a passive investment strategy.

He hoped that it would fill the void for a low-cost exchange traded product and would be instrumental in enhancing the market depth and liquidity.

PSX Managing Director Farrukh Khan said that with the introduction of ETFs, market would become more attractive to all investors, especially retail.

“Looking at the growth trends of ETFs globally, I am confident that there is great potential for them in Pakistani market as they are an ideal, cost effective instrument for investors who wish to take advantage of the attractive valuations locally”.

Published in Dawn, March 25th, 2020