First Metro puts on hold new ETF, eyes new consumer index

The First Metro group is no longer launching a new exchange-traded fund (ETF), and will focus instead on creating a new consumer index this second quarter and focus on promoting its current ETF.

"We were thinking (of launching a new ETF), but what we're gonna do now is we're going to promote our existing ETF more extensively," Augusto M. Cosio Jr., President of First Metro Asset Management Inc., told GMA News Online on the sidelines of the ASEAN Prosperity Summit for All in Pasay City over the weekend.

ETFs are marketable securities that track an index, commodities, bonds or a basket of assets like an index fund, according to Investopedia.

Cosio said the company will focus on the current First Metro Philippine Equity Exchange-Traded Fund (FMETF), which mirrors the performance of the Philippine Stock Exchange index (PSEi). It is also set to launch a new index comprising consumer stocks.

Last year, the group said it will introduce another ETF this year which will track a new set of stocks."

"It's not totally scrapped. That's why we came up with a consumer index. When the consumer index gains a lot of acceptance and popularity, then maybe that should be the time when we can put up a consumer ETF," he said.

Set to be launched late May or early June, the index will track companies that are strongly influenced by consumer spending in the Philippines, one of the main drivers of economic growth.

"The details we will announce. Mahirap to announce right now because we're still finalizing it, but we've already informed the stock exchange and we're asking for their cooperation as well," Cosio said.

"In the meantime, I think it would be more appropriate for us to make our current ETF a lot more popular," he added. — VDS, GMA News