Thursday, January 27, 2022
spot_img

JS Investments introduces Smart Beta ETF | JS Momentum Factor Exchange Traded Fund

Advertisement

Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Pakistan Stock Exchange (PSX) held a gong ceremony today to officially mark the launch of JS Momentum Factor Exchange Traded Fund (JSMFETF). This ETF which is the fifth ETF on PSX was launched on Friday, January 7, 2022.

The participants of the Ceremony included Chairperson PSX, Dr. Shamshad Akhtar; MD & CEO PSX, Farrukh H. Khan; CEO JS Investments Ltd, Ms. Iffat Zehra Mankani; CEO & President JS Bank, Basir Shamsie; CEO JS Global, Kamran Nasir along with other esteemed dignitaries, heads of banking and non-banking financial institutions including brokerage houses, insurance companies and other financial services & media personnel.

Speaking at the occasion, the MD PSX, Farrukh Khan, stated, “ETFs are an important product in global capital markets and it is exciting to see new and innovative ETFs being launched on PSX. Globally, ETFs command a large asset base worth over $9 trillion. It is an exciting development that we have the fifth ETF listed on Pakistan Stock Exchange. The JS Momentum Factor ETF which does not track a market capitalization based index is a valuable addition on the ETF sector of the bourse for attracting retail and institutional investors. I congratulate JS Investments on launching this innovative new ETF.”

He further stated, “While I would urge brokers and AMCs to produce research and educate investors about this unique and attractive investment product, I would really emphasize upon the broker community to encourage and promote the ETFs to their current and new investors. This will add depth & liquidity to the market whilst presenting a suitable investment option for investors who want to diversify their portfolios costeffectively. ETFs also allow savvy investors to focus on specific sectors or attributes of the market.”

Speaking at the launch of the new ETF, the CEO of JS Investments, Ms. Iffat Mankani, said, “JS MOMENTUM FACTOR ETF is Pakistan’s first Smart Beta Exchange Traded Fund and its launch would pave the way to a durable investment style that displays both active and passive investment management features. JSMFETF follows a Factor Investing approach that tilt exposure towards ‘factors’ in a rules-based portfolio-building process that systematically selects, weights, and rebalances portfolio holdings based on factors or characteristics versus a market capitalization approach. Some of the examples of the factors are dividend yield, value defined by low P/E ratios of P/B multiple or ‘Momentum’ as in the case of this fund and have been proven historically to capture market inefficiencies and in turn has been able to deliver attractive risk-adjusted returns, enhanced efficiency, and transparency. The evidence for momentum in markets is very strong and is supported by almost two decades of academic research in US equities as well as markets outside the U.S, our back tests of the ETF strategy reveal that momentum has also outperformed our local stock index i.e. KSE-All-share index by 6% annualized over 2001 – 2021.”

JS MOMENTUM FACTOR ETF (JSMFETF) seeks to track the investment results of JS Momentum Factor Index (JSMFI), composed of PSX large- and mid-capitalization stocks exhibiting relatively higher price momentum. The theory behind Momentum is that stocks whose share prices have consistently risen for a given period of time are likely to keep rising. JSMI has developed an index methodology that captures momentum in an intuitive and transparent way, making it accessible to all investors.

JS Momentum ETF is an approved investment product by the Security Exchange Commission of Pakistan (SECP) and is traded on the stock exchange under the ticker ‘JSMFETF’.

- Advertisement -
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
- Advertisement -
- Advertisement -

Latest News

0
Would love your thoughts, please comment.x
()
x