Bdo Pera Equity Index Fund

BDO Pera Equity Index Fund: A Comprehensive Guide

Introduction

The BDO Pera Equity Index Fund is a passive exchange-traded fund (ETF) that tracks the performance of the Philippine Stock Exchange Composite Index (PSEi). It was launched in 2015 and is managed by BDO Asset Management, Inc.

Investment Objective

The fund's investment objective is to provide investors with long-term capital growth by replicating the performance of the PSEi. The fund invests in the stocks of the 30 largest and most liquid companies listed on the PSE.

Fund Structure

The fund is an open-ended ETF, which means that investors can buy and sell shares throughout the trading day. The fund has a low expense ratio of 0.50%, which is lower than the average for Philippine ETFs.

Portfolio Composition

The fund's portfolio is diversified across various sectors, including financials, industrials, and consumer goods. The top holdings of the fund include Ayala Corporation, SM Investments Corporation, and BDO Unibank, Inc.

Performance

The fund has performed well since its launch, outperforming the PSEi in most years. In 2022, the fund returned 9.5%, compared to the PSEi's return of 4.2%.

Investment Suitability

The fund is suitable for investors who are seeking long-term capital growth and are comfortable with the risks associated with investing in the stock market. The fund is also a good option for investors who want to diversify their portfolio with exposure to the Philippine stock market.

How to Invest

Investors can purchase shares of the BDO Pera Equity Index Fund through a broker or online investment platform. The fund is listed on the Philippine Stock Exchange under the ticker symbol "PEIF".

Conclusion

The BDO Pera Equity Index Fund is a well-managed and cost-effective way to invest in the Philippine stock market. The fund has a proven track record of performance and is suitable for investors seeking long-term capital growth.