Exchange Traded Funds (ETFs)

ETF is the acronym for an innovative financial product known as Exchange Traded Fund. It is an open-ended investment fund listed and traded on a stock exchange. ETF combines the features of an Index fund and a stock. The liquidity of an ETF reflects the liquidity of the underlying basket of shares.

Generally, there are three types of ETFs: equity ETFs, fixed income ETFs and commodity ETFs. These ETFs consists of baskets of stocks, bonds or commodities based on an index which instantly offers broad diversification and avert the risk involved in owning stock of a single company.

ETFs are listed and traded on a stock exchange. With units in an ETF, investors can gain exposure to a geographical region, market, industry or sector, commodity such as gold or oil or even a specific investment style such as growth or value. To determine the exposure, investors will need to look at its underlying benchmark or the assets held in the ETF. For example, Asia’s first Syariah-compliant ETF, MyETF- Dow Jones Islamic Market Malaysia Titans 25 (myETF-DJIM25) trades on Bursa Malaysia and tracks the Dow Jones Islamic Market Malaysia Titans 25 Index. This indicates that MyETF-DJIM25 holds shares of the 25 leading syariah-compliant listed companies in the country.

Why do investors choose ETFs?

Diversified Exposure

Unlike individual shares, ETFs hold a basket of securities with the objective of mimicking the performance of an index. This basket can be made up of shares, bonds or commodities, depending on the index that the ETF is based on.

Instead of holding a few stocks or bonds, investors can use ETFs for exposure to a diversified basket of investment products.

Cost Effectiveness

Lower annual management fees for ETFs compared to unit trusts makes ETFs economical to buy and to maintain in the long run.

Simplicity

ETFs are listed on the Main Market of Bursa Malaysia. Similar to stocks, the buying and selling of ETF units are done based on its current market price in a single transaction. Trades can be done online or through stock brokers.

Transparency

Investors know exactly which stocks or underlying assets is held in the ETF by visiting the ETF’s website, provided by its manager. Here, the list of ETF constituents is updated on a daily basis.

List of ETFs

Commodity ETF

• TRADEPLUS SHARIAH GOLD TRACKER (0828EA)

  TradePlus Shariah Gold Tracker is the first shariah-compliant commodity ETF launched in Malaysia. The fund provides investors with investment results that closely track the performance of gold price through an ETF structure. It is available for subscription in US Dollar (via the Primary Market) and tradeable in Malaysian Ringgit (via the Secondary Market).

  The fund is suitable for investors who seek exposure into gold through a shariah-compliant investment structure, and have a moderate risk tolerance level.

  ETF	TRADEPLUS SHARIAH GOLD TRACKER
  Date of Listing	6 December 2017
  Stock Name	GOLDETF
  Stock Code	0828EA
  Underlying Index	LBMA Gold Price AM
  Fund Manager	Affin Hwang Asset Management
  Market Maker	Affin Hwang Investment Bank Bhd Malacca Securities Sdn Bhd List of Market Maker
  Board Lot	100 units
  Website	tradeplus.com.my

Equity ETF

• FBMKLCI-ETF (0820EA)

  FTSE Bursa Malaysia KLCI ETF (FBMKLCI-EA) is the first equity ETF in Malaysia. This ETF was initially known as the FBM30etf and renamed as FBM KLCI etf when its underlying index, the FBM KLCI was launched on 6 July 2009.

  FBM KLCI etf tracks Malaysia's benchmark index. This ETF gives investors exposure to the 30 biggest listed companies that collectively represent the Malaysian stock market.

  ETF	FTSE Bursa Malaysia KLCI ETF
  Date of Listing	19 July 2007
  Stock Name	FBMKLCI-EA
  Stock Code	0820EA
  Underlying Index	FTSE Bursa Malaysia KLCI Index
  Fund Manager	AmFunds Management Berhad
  Market Maker	AmInvestment Bank Berhad JF Apex Securities Bhd Malacca Securities Sdn Bhd List of Market Maker
  Board Lot	100 units
  Website	www.fbmklcietf.com.my

• CIMB FTSE ASEAN 40 MALAYSIA (0822EA)

  CIMB FTSE Asean 40 ETF Malaysia is the first cross-listed ETF in Malaysia. This ETF was primarily listed in Singapore in 2005 and tracks the FTSE/ASEAN 40 Index Fund. It's a tradable index consists of 40 constituent stocks from 5 ASEAN countries namely Singapore, Malaysia, Thailand, Indonesia and Philippines. This ETF is specially designed to track the performance of ASEAN-5 markets.

  ETF	CIMB FTSE ASEAN 40 MALAYSIA
  Date of Listing	9 July 2010
  Stock Name	CIMBA40
  Stock Code	0822EA
  Underlying Index	FTSE/ASEAN 40 Index
  Fund Manager	CIMB Principal Asset Management
  Market Maker	CIMB Investment Bank Bhd RHB Investment Bank Bhd List of Market Maker
  Board Lot	100 units
  Website	www.cimbetf.com.my

• CIMB FTSE China 50 (0823EA)

  CIMB FTSE CHINA 25 is the first foreign underlying ETF launched in Malaysia. It tracks the FTSE China 50 index that gives exposure to 50 largest and most liquid Chinese stocks listed and traded on the Hong Kong Stock Exchange.

  ETF	CIMB FTSE CHINA 50
  Date of Listing	9 July 2010
  Stock Name	CIMBC50
  Stock Code	0823EA
  Underlying Index	FTSE China 50 Index
  Fund Manager	CIMB Principal Asset Management
  Market Maker	CIMB Bank Bhd RHB Investment Bank Bhd List of Market Maker
  Board Lot	100 units
  Website	www.cimbetf.com.my

• TRADEPLUS S&P NEW CHINA TRACKER (0829EB & 0829EA)

  The TradePlus S&P New China Tracker is an ETF that is designed to provide investors a convenient access to Chinese listed companies within the consumption and service-oriented industries. The fund closely tracks the performance of the S&P New China Sectors Ex A-Shares Index. It is available for subscription in HK Dollar (via the Primary Market) and tradeable in US Dollar and Malaysian Ringgit (via the Secondary Market).

  The fund is suitable for investors who seek exposure to Chinese listed companies in the consumption and service-oriented industries, and have a high risk tolerance level.

  ETF	TRADEPLUS S&P NEW CHINA TRACKER (0829EB)
  	TRADEPLUS S&P NEW CHINA TRACKER (0829EA)
  Date of Listing	28 January 2019
  Stock Name	CHINAETF-USD
  	CHINAETF-MYR
  Stock Code	0829EB (CHINAETF-USD)
  	0829EA (CHINAETF-MYR)
  Underlying Index	S&P New China Sectors Ex A-Shares Index
  Fund Manager	Affin Hwang Asset Management Berhad
  Market Maker	Affin Hwang Investment Bank Berhad Malacca Securities Sdn Bhd List of Market Maker
  Board Lot	100 units
  Website	tradeplus.com.my

Equity ETF (Shariah Compliant)

• MYETF DOW JONES U.S. TITANS 50 (0827EA)

  MyETF Dow Jones U.S. Titans 50 is the first Shariah-compliant equity ETF traded in US Dollar. The fund provides investors with investment results that closely track the performance of the Dow Jones Islamic Market U.S. Titans 50 Index which comprises of the 50 largest companies (by float-adjusted market capitalization) listed on NYSE and Nasdaq. It is available for subscription in US Dollar (via the Primary Market) and tradeable in US Dollar (via the Secondary Market).

  The fund is suitable for investors who seek diversification and investment opportunities in the U.S. market for medium-term (1-3 years) to long-term (more than 3 years) investment horizon as well as short-term (less than 1 year) trading and arbitrage opportunities.

  ETF	MYETF DOW JONES U.S. TITANS 50
  Date of Listing	28 February 2018
  Stock Name	METFUS50
  Stock Code	0827EA
  Underlying Index	Dow Jones Islamic Market U.S. Titans 50 Index
  Fund Manager	i-VCAP Management Sdn Bhd
  Market Maker	CIMB Bank Bhd List of Market Maker
  Board Lot	100 units
  Website	www.myetf.com.my

• MyETF-DJIM25 (0821EA)

  MyETF Dow Jones Islamic Market Malaysia Titans 25 (MyETF-DJIM25) is the first national ETF and the first Shariah-compliant ETF in Asia. This ETF complies with Islamic investment laws and is supervised by a Shariah advising committee. As a national ETF, MyETF-DJIM25 is managed by a government-linked investment company.

  MyETF-DJIM25 gives exposure to 25 largest listed Shariah-compliant companies listed on Bursa Malaysia.

  ETF	MyETF Dow Jones Islamic Market Malaysia Titans 25 or MyETF-DJIM25
  Date of Listing	31 January 2008
  Stock Name	MYETFDJ
  Stock Code	0821EA
  Underlying Index	Dow Jones Islamic Market Malaysia Titans 25 Index
  Fund Manager	i-VCAP
  Market Maker	CIMB Investment Bank Berhad RHB Investment Bank Berhad List of Market Maker
  Board Lot	100 units
  Reuters Code	DJMT.KL
  Syariah Compliant	Yes
  Website	www.myetf.com.my

• MyETF MSCI Malaysia Islamic Dividend (0824EA)

  MyETF MSCI Malaysia Islamic Dividend or MyETF-MMID aims to provide investment results that closely correspond to the performance of the Benchmark Index, which is a price return index comprising 16 to 30 Shariah-complaint securities listed on Bursa Securities, with higher than average dividend yield that are deemed both sustainable and persistent by MSCI.

  ETF	MyETF MSCI Malaysia Islamic Dividend
  Date of Listing	21 Mar 2014
  Stock Name	MYETFID
  Stock Code	0824EA
  Underlying Index	MSCI Malaysia IMI Islamic High Dividend Yield 10/40
  Fund Manager	i-VCAP Management
  Market Maker	CIMB Investment Bank RHB Investment Bank Bhd List of Market Maker
  Board Lot	100 units
  Website	www.myetf.com.my

• MYETF MSCI South East Asia Islamic Dividend (0825EA)

  MyETF MSCI South East Asia Islamic Dividend (0825EA) or MyETF-MSEAD is an ETF that tracks the performance of the MSCI South East Asia IMI Islamic High Dividend Yield 10/40 Index which objectively and passively represent the dividend yield opportunity within South East Asia’s Shariah equity markets.

  ETF	MyETF MSCI Malaysia South East Asia Islamic (SEA) Dividend
  Date of Listing	7 May 2015
  Stock Name	METFSID
  Stock Code	0825EA
  Underlying Index	MSCI South East Asia IMI Islamic High Dividend Yield 10/40 Index
  Fund Manager	i-VCAP Management Sdn Bhd
  Market Maker	CIMB Investment Bank Berhad List of Market Maker
  Board Lot	100 units
  Website	www.myetf.com.my

• MyETF Thomson Reuters Asia Pacific Ex-Japan Islamic Agribusiness (0826EA)

  MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness (0826EA) is an ETF that tracks the performance of the Thomson Reuters Islamic Asia Pacific ex-Japan Agribusiness Index which objectively and passively represents the stocks within the Asia Pacific region that are primarily engaged in the upstream agricultural production activities. The constituent securities are listed on the main exchanges of Australia, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and New Zealand.

  ETF	MyETF Thomson Reuters Islamic Asia Pacific ex-Japan Agribusiness Index
  Date of Listing	3 Dec 2015
  Stock Name	METFAPA
  Stock Code	0826EA
  Underlying Index	Thomson Reuters Islamic Asia Pacific ex-Japan Agribusiness Index
  Fund Manager	i-VCAP Management
  Market Maker	CIMB Investment Bank Berhad List of Market Maker
  Board Lot	100 units
  Website	www.myetf.com.my

Fixed Income ETF

• ABFMY1 (0800EA)

  ABF Malaysia Bond Index Fund (ABFMY1) is the first ETF to list in the country. This is a bond ETF that suits investors with a more conservative risk profile and those looking at diversifying their portfolio with fixed income.

  ABFMY1 gives exposure to Ringgit denominated government and quasi government debt securities.

  ETF	ABF Malaysia Bond Index Fund
  Date of Listing	13 July 2005
  Stock Name	ABFMY1
  Stock Code	0800EA
  Underlying Index	Markit iBoxx ® ABF Malaysia Bond Index
  Fund Manager	AmFunds Management Berhad
  Market Maker	List of Market Maker
  Board Lot	100 units
  Minimum Bid Size	0.1 sen
  Website	www.abfmy1.com.my