How to Invest in ETF

How to Invest in ETF (Exchange-traded Fund). An exchange-traded fund or ETF is a type of security that involves a collection of securities, usually stocks, that tracks an underlying index. ETFs are listed on stock exchanges and are traded just like stocks.

In the Philippines, there is currently only one Exchange-traded Fund available and that is the First Metro Philippine Equity Exchange Traded Fund (FMETF). This ETF was launched by First Metro Investment Corporation in 2013 and tracks the Philippine Stock Exchange Index. With FMETF, investors are afforded a way to cost-efficiently diversify their portfolio.

Buying a share of FMETF is like buying all 30 stocks in the PSE index, each in quantity less than a share. Because it tracks the index, the price performance of FMETF is similar to (although not necessarily the same as) the PSE index.

The underlying securities or stocks that cover the FMETF can be found at

etf, logo, first, metro

As an alternative to ETF, investors who would like to diversify and track the PSE Index could purchase through a bank or stockbroker an Equity Index Fund Unit Investment Trust Fund (UITF).

For more information on How to Invest in ETF, please visit First Metro’s website.

See also How to Invest in REIT.