When you think about investing in the Philippine stock market, it usually means picking individual companies — SM, Ayala, Jollibee, or BDO. But what if you could invest in all of them at once?
That’s exactly what FMETF (First Metro Philippine Equity Exchange-Traded Fund) allows you to do.
What is FMETF?
FMETF stands for First Metro Philippine Equity Exchange-Traded Fund — the first and only ETF listed on the Philippine Stock Exchange (PSE).
It was launched by First Metro Asset Management Inc. (FAMI) and mirrors the performance of the Philippine Stock Exchange Index (PSEi) — the top 30 publicly listed companies in the country.
In short, when you buy FMETF, you’re investing in a basket of the biggest and most stable companies in the Philippines.
How Does FMETF Work?
Think of FMETF as a “mirror” of the PSEi.
Instead of buying shares of 30 different companies, you can just buy one — FMETF — and instantly get diversified exposure to all of them.
The price of FMETF moves almost the same way as the PSEi.
If the index goes up, FMETF usually goes up too. If the index drops, FMETF also tends to fall.
It’s a passive investment — there’s no fund manager actively picking stocks. The goal is simply to match the performance of the PSEi.
Who Manages FMETF?
FMETF is managed by First Metro Asset Management, Inc., a subsidiary of Metrobank Group.
They handle the fund’s rebalancing, ensure it tracks the PSEi accurately, and provide liquidity through authorized participants like stockbroker partners.
Why Invest in FMETF?
Here are some solid reasons why many investors prefer FMETF:
- Instant Diversification
You get exposure to 30 blue-chip companies in one go — spreading your risk. - Lower Fees Compared to Mutual Funds
Since FMETF is passively managed, it typically has lower management fees. - Liquidity and Transparency
You can buy and sell it anytime on the Philippine Stock Exchange just like a regular stock. - Ideal for Long-Term Investors
Because it tracks the PSEi, FMETF performs best when held long-term, riding the overall growth of the Philippine economy.
How to Buy FMETF
You can buy FMETF shares through any accredited online stockbroker in the Philippines — such as:
- COL Financial
- First Metro Sec
- BDO Securities
- AB Capital
- Philstocks
- BPI Trade
Just search for FMETF in the trading platform and place your buy order like any other stock.
FMETF vs. Mutual Funds
| Feature | FMETF | Mutual Fund |
|---|---|---|
| Management Style | Passive (tracks the index) | Actively managed |
| Fees | Lower | Higher |
| Buy/Sell Method | Through stockbroker | Through fund manager |
| Price Transparency | Real-time on the PSE | End-of-day NAVPS |
Dividends and Returns
FMETF also earns dividends from the companies it holds.
While not as high as individual dividend stocks, these payouts can be reinvested for compounding returns.
Historically, FMETF’s performance mirrors the PSEi — growing alongside the Philippine economy over time.
Risks to Consider
No investment is risk-free. FMETF’s main risk is market volatility — when the PSEi drops, FMETF value can also decline.
However, for long-term investors who believe in the Philippine economy, FMETF remains one of the most straightforward ways to invest in growth.
Blogger’s Corner
For most beginners, FMETF is the perfect starting point for investing in the Philippine stock market.
It saves you the trouble of analyzing which stock to buy, while still giving you diversified exposure to blue-chip companies.
If you’re the type who doesn’t have time to monitor charts or news daily, FMETF lets you invest once and grow with the market.
It’s not a get-rich-quick scheme, but it’s a proven, steady way to participate in the country’s long-term growth.