The SEC has approved the final set of rules that would guide the offering of exchange traded funds or ETFs.
ETFs are similar to other kinds of investment funds, but unlike mutual funds and UITFs whose value are computed and posted daily by the issuer, the price of an ETF is determined by how much investors are willing to pay for (and sellers willing to receive for) its shares, just like stocks and other assets that are traded in exchanges.
ETFs are a good alternative to currently available investment funds because they are more liquid (easier to convert to cash) and ideally have lower costs.
According to the article, at least three firms, First Metro Investment Corp., BDO Unibank Inc., and Bank of the Philippine Islands have expressed their plan to offer ETFs.
A copy of the rules may be found here.
Many thanks to reader haezel for the heads up.