On 9 July 2010, CIMB listed two new ETFs on KLSE. These two new ETFs are CIMB FTSE ASEAN 40 Malaysia and CIMB FTSE Xinhua China 25. This is Malaysia’s first offshore ETF.

CIMB FTSE ASEAN 40 Malaysia is a feeder fund of Singapore listed CIMB FTSE ASEAN 40 whereby substantially all the assets of the fund will be invested into the units of the CIMB FTSE ASEAN 40.  FTSE/ASEAN 40 Index consist of 40 largest companies by market value across five countries’ stock exchange (Indonesia, Malaysia, Thailand, Singapore, Philippines). Among the top 5 constituent of the fund are DBS Group Holding Ltd, Singapore Telecommunication Ltd, CIMB Group Holding Bhd and Oversea Chinese Banking Corp. Ltd.

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ETF is gaining popularity sooner or later just as REITs in Malaysia become investor favorite since Sunway listed its REIT and followed by Capital Malls in July. ETF become hot investment vehicle in foreign country  because of its several advantages on stock and unit trust.  Since 2002, assets held in ETFs around the world increase more than fivefold while the number of global ETFs increased more than eightfold.

5 ETFs listed on KLSE

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Exchange Traded Fund aka ETF is another investment tools which track index performance. It is the same as index fund in unit trust. The fund invest in a certain group of stock, bond or any market instrument and track its performance using index.

Combination of unit trust and stock

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