CIMB Listing Two New ETFs
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.
CIMB FTSE Xinhua China 25 track the performance of 25 largest and most liquid Chinese stocks listed and traded on the Hong Kong Stock Exchange (HKSE). Among the top picks in the index are China Mobile, China Construction Bank, Industrial and Commercial Bank of China, China Life Insurance Co Ltd and CNOOC Ltd.
CIMB FTSE ASEAN 40 Malaysia CIMB FTSE Xinhua China 25
From the above two sector breakdown cart, we can see that both ETFs heavily invest in financial and telecommunication sector. Financial sector cover almost half of the asset allocation, more than 40%. If you are aggressive investor, you might directly invest in financial and telecommunication company’s stock to have a bigger return of investment.
These two ETFs give investors a great exposure to Asian country especially China and Southeast Asia countries. 21 Century will be the Asian century as the economy power is shifting to the east gradually. With these two ETFs, we can directly invest in the foreign country without hassle of opening foreign trading account.
ETF is for those who don’t know much about investing or got no time to monitor their investments.
Personally i trust my own picks in investment rather then those Fund Managers. ^^
If you can pick stocks just like what the fund managers pick, then you will never go wrong.
Just my 2 cents!^^
[Reply]
Mrcoolku Reply:
August 1st, 2010 at 6:13 am
ETF is much easier to invest and lower risk. It is just a diversification of your portfolio. However, if the market is having another recession, I will buy ETF at the low point as it go after the index. Market definitely will recover so as index.
We are still young, therefore we go for riskier investment. I think when we go 30, we might look saver investment as well. XD
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