{"id":503,"date":"2024-05-02T00:10:46","date_gmt":"2024-05-02T00:10:46","guid":{"rendered":"https:\/\/pesolab.com\/?p=503"},"modified":"2024-05-02T00:10:46","modified_gmt":"2024-05-02T00:10:46","slug":"fmetf-first-metro-philippine-equity-etf","status":"publish","type":"post","link":"https:\/\/pesolab.com\/fmetf-first-metro-philippine-equity-etf\/","title":{"rendered":"FMETF First Metro Philippine Equity ETF"},"content":{"rendered":"\n
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<\/a>Don\u2019t you know that there\u2019s a\u00a0stock<\/a>\u00a0that holds stocks of other companies? It\u2019s called FMETF or First Metro Philippine Equity Exchange Equity Traded Fund, and it\u2019s the only\u00a0exchange traded fund<\/a>\u00a0in the Philippines.<\/p>\n\n\n\n

This article discusses an actual ETF that you can start\u00a0investing<\/a>\u00a0to earn\u00a0passive income<\/a>. If this is your first time learning about it, please consider reading up the guide on\u00a0ETF investing<\/a>\u00a0and then you can come back to this page later.<\/p>\n\n\n\n

What is FMETF?<\/strong><\/h2>\n\n\n\n

FMETF stands for First Metro Philippine Equity Exchange Traded Fund. It is the only exchange traded fund in the market today, and it is engaged in acquiring\u00a0equities<\/a>. By definition, it is considered an\u00a0equities index fund<\/a>.<\/p>\n\n\n\n

Established on January 15, 2013, it was launched by the First Metro Investment Corporation (FMIC), a wholly-owned subsidiary of the Metrobank Group. The First Metro Asset Management, Inc., a company which also sells mutual funds, is its fund manager and principal distributor.<\/p>\n\n\n\n

Like\u00a0mutual funds<\/a>,\u00a0UITFs<\/a>,\u00a0Personal Equity and Retirement Account (PERA)\u00a0<\/a>and\u00a0variable universal life (VUL)<\/a>, it holds a basket of shares of companies. The difference is that you have to deal and subscribe to the investment funds directly from\u00a0mutual fund companies<\/a>,\u00a0trust companies offering UITFs<\/a>\u00a0and\u00a0PERA<\/a>, and\u00a0insurance companies<\/a>\u00a0offering VUL. With FMETF, the only way to invest is by\u00a0buying its stocks<\/a>\u00a0on the\u00a0Philippine Stock Exchange<\/a>. In short, it is a fund whose shares are being traded on the stock market.<\/p>\n\n\n\n

Investment goal of FMETF<\/strong><\/h2>\n\n\n\n

Its goal is to simply match the return of the\u00a0stock index<\/a>. The stock index is composed of the\u00a0blue chip or Philippine top 30 companies<\/a>, which are collectively called the\u00a0Philippine Stock Exchange index (PSEi)<\/a>. FMETF achieves this by buying only these companies. Not only that, it also tries to match the proportion of each company to the index as closely as possible.<\/p>\n\n\n\n

See the table below for comparison between the composition of the fund and PSEi.<\/p>\n\n\n\n

SECURITY NAME<\/th>PSEI %<\/th>FMETF %<\/th><\/tr>
SM INVESTMENTS CORPORATION<\/td>13.14<\/td>13.04<\/td><\/tr>
AYALA LAND, INC.<\/td>9.94<\/td>9.8<\/td><\/tr>
SM PRIME HOLDINGS, INC.<\/td>9<\/td>8.97<\/td><\/tr>
BDO UNIBANK, INC.<\/td>7.09<\/td>7.1<\/td><\/tr>
AYALA CORPORATION<\/td>6.65<\/td>6.81<\/td><\/tr>
JG SUMMIT HOLDINGS, INC.<\/td>5.18<\/td>5.16<\/td><\/tr>
BANK OF THE PHILIPPINE ISLANDS<\/td>4.3<\/td>4.31<\/td><\/tr>
UNIVERSAL ROBINA CORPORATION<\/td>4.29<\/td>4.22<\/td><\/tr>
INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.<\/td>3.7<\/td>3.67<\/td><\/tr>
ABOITIZ EQUITY VENTURES, INC.<\/td>3.67<\/td>3.68<\/td><\/tr>
METROPOLITAN BANK & TRUST COMPANY<\/td>3.53<\/td>3.51<\/td><\/tr>
JOLLIBEE FOODS CORPORATION<\/td>3.43<\/td>3.52<\/td><\/tr>
PHILIPPINE LONG DISTANCE TELEPHONE COMPANY \u201cCommon\u201d<\/td>2.75<\/td>2.99<\/td><\/tr>
MANILA ELECTRIC COMPANY<\/td>2.29<\/td>2.23<\/td><\/tr>
GT CAPITAL HOLDINGS, INC.<\/td>2.03<\/td>1.9<\/td><\/tr>
SECURITY BANK CORPORATION<\/td>1.95<\/td>1.87<\/td><\/tr>
MEGAWORLD CORPORATION<\/td>1.67<\/td>1.65<\/td><\/tr>
GLOBE TELECOM, INC.<\/td>1.61<\/td>1.81<\/td><\/tr>
METRO PACIFIC INVESTMENTS CORPORATION<\/td>1.61<\/td>1.6<\/td><\/tr>
SAN MIGUEL CORPORATION<\/td>1.58<\/td>1.6<\/td><\/tr>
ROBINSONS LAND CORPORATION<\/td>1.37<\/td>1.33<\/td><\/tr>
ABOITIZ POWER CORP.<\/td>1.3<\/td>1.22<\/td><\/tr>
ALLIANCE GLOBAL GROUP, INC.<\/td>1.17<\/td>1.15<\/td><\/tr>
BLOOMBERRY RESORTS CORPORATION<\/td>1.12<\/td>1.14<\/td><\/tr>
LT Group, Inc.<\/td>1.11<\/td>1.17<\/td><\/tr>
PUREGOLD PRICE CLUB, INC.<\/td>1.1<\/td>1.14<\/td><\/tr>
ROBINSONS RETAIL HOLDINGS INC.<\/td>1.06<\/td>1.04<\/td><\/tr>
DMCI HOLDINGS, INC.<\/td>0.94<\/td>0.92<\/td><\/tr>
FIRST GEN CORPORATION<\/td>0.79<\/td>0.9<\/td><\/tr>
SEMIRARA MINING AND POWER CORPORATION<\/td>0.64<\/td>0.57<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The composition of the fund is adjusted periodically. PSE reviews the companies that make up the index every six months, and may either stick to the current list or update it.<\/p>\n\n\n\n

Features of FMETF<\/strong><\/h2>\n\n\n\n

Now that you have a basic understanding of how the fund works, it\u2019s time to discuss some of its finer details. The following are some of its common features.<\/p>\n\n\n\n