PSX marks launch of sixth ETF

KARACHI: Pakistan Stock Exchange (PSX) held a gong ceremony to officially mark the launch of Alfalah Consumer Index Exchange Traded Fund (ACI-ETF), which is the sixth ETF in the bourse, a statement said on Monday.

“ETFs are an innovative product in global capital markets and it is exciting to have the sixth ETF being listed on PSX [Pakistan Stock Exchange], said Farrukh Khan, managing director at PSX.

Talking on the occasion, he also emphasized upon brokers to train their sales teams so that they could advise investors about advantages of investing in an ETF. “An investor can get diversified exposure to the stock market by a single trade. This is both cost effective and simple,” he explained.

Meanwhile, Atif Bajwa, CEO of Bank Alfalah Limited said they were excited about the consumer focused ETF and added that Alfalah family would be introducing new products and innovation in the market.

Nabeel Malik of Alfalah GHP Investment Management Limited said the ETF would provide investors a unique investment avenue to play the country’s promising demographics. He added that ACI-ETF focused on sectors, which were direct beneficiaries of growing consumer demand in the country, anticipated to strengthen further in wake of economic recovery and sustained GDP (Gross Domestic Product) growth.

ETF is an investment product which combines the characteristics of both mutual funds and individual securities. In other words, it offers opportunity to invest in a portfolio of securities that provides the same diversification benefits of mutual funds with the liquidity & trading flexibility of stocks.