KARACHI: A gong ceremony took place at the Pakistan Stock Exchange (PSX) on Friday to officially mark the launch of JS Momentum Factor Exchange-Traded Fund (JSMFETF), which is the fifth such fund to have listed on the national bourse.

Each ETF represents a basket of companies and is traded on the exchange like a single stock. JSMFETF does not track a marl(et capitalisation-base d index, which makes it different from the four ETFs previously listed on the exchange.

According to JS Investments Ltd CEO Iffat Zehra Mankani, JSMFETF will track the JS Momentum Factor Index, which consists of 10 largeand mid-capitalisation stocksshowing a high `price momentum`.

Theindexwillrebalanceeverymonth to ensure the inclusion of stocks whose prices have consistently risen for a certain period and are likely to keep rising in the near future.

The benchmark currently consists of Treet Corporation Ltd, TeleCard Ltd, National Refinery Ltd, Meezan Bank Ltd, Engro Fertilisers Ltd, Systems Ltd, TPL Corporation Ltd, Sui Northern Gas Pipelines Ltd, Kot Addu Power Company Ltd and Amreli Steels Ltd.

Speaking on the occasion, PSX Managing Director Farrukh H Khan said the newly listed ETF will help the exchange attract retail and institutional investors. `I ask brokers and asset management companies to produce research and educate investorsabout thisunique and attractiveshowing a high `price momentum`.

Theindexwillrebalanceeverymonth to ensure the inclusion of stocks whose prices have consistently risen for a certain period and are likely to keep rising in the near future.

The benchmark currently consists of Treet Corporation Ltd, TeleCard Ltd, National Refinery Ltd, Meezan Bank Ltd, Engro Fertilisers Ltd, Systems Ltd, TPL Corporation Ltd, Sui Northern Gas Pipelines Ltd, Kot Addu Power Company Ltd and Amreli Steels Ltd.

Speaking on the occasion, PSX Managing Director Farrukh H Khan said the newly listed ETF will help the exchange attract retail and institutional investors. `I ask brokers and asset management companies to produce research and educate investorsabout thisunique and attractiveproduct. Pd urge the broker community to encourage and promote ETFs to their current and new investors, he said. This will add depth and liquidity to the market while presenting a suitable investment option for investors who want to diversify their portfolios cost-effectively, he added.

Globally, as much as ETFs command a large asset base worth over $9 trillion.

JSMF-ETF follows a factor investing approach that tilts exposure towards `factors` in a rules-based portfolio-building process that selects, weights and rebalances portfolio holdings based on characteristies versus a market capitalisation approach.

JSMF-ETF lost 0.9 per cent value to close at Rs9.96 a unit on Friday.