JS Momentum Factor Exchange Traded Fund (JSMFETF) was officially launched in a gong ceremony organized by the Pakistan Stock Exchange on Friday, marking it the fifth ETF to list on PSX.
An ETF is a portfolio of assets that combines the gains of mutual funds with the liquidity and trading options of stocks. To put it another way, the ETF is a type of investment that combines the benefits of mutual funds and individual stocks.
The JS Momentum Factor ETF (JSMFETF) aims to track the investment performance of the JS Momentum Factor Index (JSMFI), which is made up of PSX large- and mid-capitalization equities with higher price momentum. This is based on the idea that equities with strong momentum tend to outperform the KSE-All Share Index in the long run.
Dr. Shamshad Akhtar, Chairperson PSX; Mr. Farrukh H. Khan, MD & CEO PSX; Ms. Iffat Zehra Mankani, CEO JS Investments Ltd; Mr. Basir Shamsie, CEO & President JS Bank; Mr. Kamran Nasir, CEO JS Global; and other diplomats, directors of banking and non-banking financial firms, brokerage firms, insurance firms, and other financial services & media personnel, were among the several guests that attended the ceremony.
Farrukh Khan, the MD of PSX, spoke at the event, saying that “ETFs were an essential product in global capital markets, and that it was exciting to see new and innovative ETFs being introduced on PSX.” He also praised JS Investments for developing this ground-breaking new ETF.
ETFs have a huge asset base of nearly $9 trillion globally. The fact that we now have a fifth ETF listed on PSX is an exciting development, he stated.
He requested that brokers and asset management firms (AMCs) conduct research and educate clients about the investment product, adding that it will add quality and liquidity to the market while also offering investors a cost-effective diversity option. Smart investors can also focus on certain sectors or target markets using ETFs, he added.
The JSMF-ETF, according to Ms. Iffat Mankani, CEO of JS Investments, was the country’s first smart beta exchange traded fund, and the initiative would pave the way for a long-term investment plan that could include both active and passive investment management aspects.
The Securities and Exchange Commission of Pakistan (SECP) has certified JS Momentum ETF as an investment product, and it is traded on the stock exchange under the ticker ‘JSMFETF.’
To read our blog on, On January 17th, Alfalah will list an exchange-traded fund (ETF) on PSX, click here.