Bangkok--2 Apr--SET The Stock Exchange of Thailand (SET) has selected TMB Asset Management to establish and manage the new equity ETF (exchange-traded fund) to be based on SET’s energy sector index. The ETF will be launched by July this year. The Exchange and TMB Asset Management will work closely to prepare for the product launch. The new equity ETF must have an initial size of at least THB 300 million, in which SET will invest no more than THB 30 million, SET Senior Vice President and chairman of SET’s working committee Supakit Jirapraditkul said. “Success factors for managing sectoral equity ETFs include understanding the product mechanism in both primary and secondary markets, work processes, clear marketing plans, liquidity management and management competence. The working committee considered that TMB Asset Management best met all key criteria,” Mr. Supakit said. The working committee, comprised of executives from SET and Thailand Securities Depository Co., Ltd., invited tenders, considered each candidate’s proposal and held discussions with them. ETFs can be traded like stocks, while having the risk diversification of index funds and costing less than other funds. By combining the features of stocks and open-ended funds, they suit investors looking for alternatives with less risk than direct stock investment. Equity ETFs also benefit institutional investors by helping them to better manage their portfolios.