PSE sets info drive on ETFs

MANILA, Philippines - The Philippine Stock Exchange (PSE) has prepared more information campaigns ahead of the launch of new investment product Exchange-Traded Funds (ETFs).

Following a successful ETF seminar in Cebu, PSE said it will conduct more trainings for retail investors in Manila on Sept. 10 and Davao on Sept. 20.

“Investor education is key to understanding and appreciating new investment products like ETFs,” said PSE president and CEO Hans Sicat.

“We are greatly encouraged by the good attendance and active participation of our Cebu investors to do more ETF information sessions,” Sicat said.

The operator of the country’s only stock exchange has been conducting seminars as part of its market education efforts to make the public aware of the features of ETFs.

Specifically, the session covers topics like the definition of ETF, the advantages of investing in the new product and the investment instrument’s growth worldwide.

In June, the Securities and Exchange Commission (SEC) approved the final set of guidelines that will allow the launching of ETFs.

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.

At least three firms, First Metro Investment Corp. of the Metrobank

Group, Sy-led BDO Unibank Inc. and Bank of the Philippine Islands of the Ayala conglomerate have expressed their plan to offer ETFs.

ETFs are seen to offer several advantages and investment options to investors including liquidity especially for those who cannot directly access specific sectors in the market due to a country’s specific regulatory environment.

PSE said that for retail investors, ETFs allow for a cheaper access to a diversified portfolio of stocks because investors do not have to buy multiple stocks.

The proposed ETF listing rules, which is governed by the general ETF guidelines issued by SEC in October, provides for transparency and investor safeguards that adhere to the International Organization of Securities Commissions and best practices in other jurisdictions.