KARACHI: A gong ceremony took place at the Pakistan Stock Exchange (PSX) on Friday to officially mark the launch of JS Momentum Factor Exchange-Traded Fund (JSMF-ETF), which is the fifth such fund to have listed on the national bourse.

Each ETF represents a basket of companies and is traded on the exchange like a single stock. JSMF-ETF does not track a market capitalisation–based index, which makes it different from the four ETFs previously listed on the exchange.

According to JS Investments Ltd CEO Iffat Zehra Mankani, JSMF-ETF will track the JS Momentum Factor Index, which consists of 10 large- and mid-capitalisation stocks showing a high “price momentum”. The index will rebalance every month to ensure the inclusion of stocks whose prices have consistently risen for a certain period and are likely to keep rising in the near future.

The benchmark currently consists of Treet Corporation Ltd, TeleCard Ltd, National Refinery Ltd, Meezan Bank Ltd, Engro Fertilisers Ltd, Systems Ltd, TPL Corporation Ltd, Sui Northern Gas Pipelines Ltd, Kot Addu Power Company Ltd and Amreli Steels Ltd.

Speaking on the occasion, PSX Managing Director Farrukh H Khan said the newly listed ETF will help the exchange attract retail and institutional investors. “I ask brokers and asset management companies to produce research and educate investors about this unique and attractive product. I’d urge the broker community to encourage and promote ETFs to their current and new investors,” he said. This will add depth and liquidity to the market while presenting a suitable investment option for investors who want to diversify their portfolios cost-effectively, he added.

Globally, as much as ETFs command a large asset base worth over $9 trillion.

JSMF-ETF follows a factor investing approach that tilts exposure towards “factors” in a rules-based portfolio-building process that selects, weights and rebalances portfolio holdings based on characteristics versus a market capitalisation approach.

JSMF-ETF lost 0.9 per cent value to close at Rs9.96 a unit on Friday.

Published in Dawn, January 15th, 2022

Opinion

Editorial

Disquiet on the western front
Updated 07 Dec, 2022

Disquiet on the western front

IT is very difficult for Pakistan to be delinked from Afghanistan, because of reasons of geography and history.
Fuel from Russia
07 Dec, 2022

Fuel from Russia

THE apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a...
More women SHOs
07 Dec, 2022

More women SHOs

IT is encouraging to see more employment avenues opening up for women in Pakistan, with an increasing number of...
Is there a plan?
Updated 06 Dec, 2022

Is there a plan?

The ball currently is in Imran's court, but it appears he is stumped as to what to do with it.
Riverfront concerns
06 Dec, 2022

Riverfront concerns

THE door-to-door drive being launched by a group of landowners to mobilise affected communities against what they...
Morality police out
06 Dec, 2022

Morality police out

FOR several months, Iran has been rocked by unprecedented protests, sparked by the death on Sept 16 of Mahsa Amini, ...