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 All about ETFs / Foreign Brokers, Exchange traded funds

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PathofLife
post Oct 28 2020, 08:52 AM

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To all senior here, need your kind advice on below investment.

ETF from bursa Malaysia
https://www.bursamalaysia.com/trade/our_pro...ge_traded_funds

Wanted to ask if i buy ETF from bursa do i own the stocks directly to the company or just own a part of Bursa portfolio.

And is it advised to buy from Bursa or there are better alternative? I am aiming a long term maybe 15 years.

Thanks in advance.
Yggdrasil
post Oct 28 2020, 09:05 AM

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QUOTE(PathofLife @ Oct 28 2020, 08:52 AM)
To all senior here, need your kind advice on below investment.

ETF from bursa Malaysia
https://www.bursamalaysia.com/trade/our_pro...ge_traded_funds

Wanted to ask if i buy ETF from bursa do i own the stocks directly to the company or just own a part of Bursa portfolio.

And is it advised to buy from Bursa or there are better alternative? I am aiming a long term maybe 15 years.

Thanks in advance.
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Look at their prospectus and financial report to see.

Usually you're sort of an indirect owner of the companies in ETFs you buy (Malaysia or overseas). The ETF is like a management company that holds the stocks. You can see their holdings in the report.

Just like REITs, you are part "owners" of the properties but it's kinda indirectly.

IMO, ETFs in Malaysia have terrible liquidity, spread and high management fees. Best is to look elsewhere.
PathofLife
post Oct 28 2020, 09:08 AM

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QUOTE(Yggdrasil @ Oct 28 2020, 09:05 AM)
Look at their prospectus and financial report to see.

Usually you're sort of an indirect owner of the companies in ETFs you buy (Malaysia or overseas). The ETF is like a management company that holds the stocks. You can see their holdings in the report.

Just like REITs, you are part "owners" of the properties but it's kinda indirectly.

IMO, ETFs in Malaysia have terrible liquidity, spread and high management fees. Best is to look elsewhere.
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Thanks for the kind advice. Regarding to the Malaysia ETF is bad do you mean that.

KLSE ETF or Dow Jones ETF, as both is listed on Bursa? Or what you recommend is dont buy any ETF from bursa whether is domestic or non-domestic?
Yggdrasil
post Oct 28 2020, 09:14 AM

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QUOTE(PathofLife @ Oct 28 2020, 09:08 AM)
Thanks for the kind advice. Regarding to the Malaysia ETF is bad do you mean that.

KLSE ETF or Dow Jones ETF, as both is listed on Bursa? Or what you recommend is dont buy any ETF from bursa whether is domestic or non-domestic?
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I mean better don't buy those on Bursa because of the way it's structured.
ETF management fees here are much higher and the ETFs are not liquid.

Only benefit is you don't have to convert to foreign currency to buy.
PathofLife
post Oct 28 2020, 09:17 AM

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QUOTE(Yggdrasil @ Oct 28 2020, 09:14 AM)
I mean better don't buy those on Bursa because of the way it's structured.
ETF management fees here are much higher and the ETFs are not liquid.

Only benefit is you don't have to convert to foreign currency to buy.
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Oh i see, thanks for the clarification and advise. Stay blessed.
jas029
post Nov 9 2020, 04:42 PM

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QUOTE(TOS @ Sep 24 2020, 10:29 PM)
Have you checked out the Accumulating option VUAA?

I have been tackling this for some time too. But due to Brexit, not sure how UCITS regulation will be affected. Things are a bit fluid for the UK now.
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bro, since there are no distribution for VUAA, does the accumulated dividend subject to the 15% withholding tax as well?
SUSTOS
post Nov 9 2020, 04:51 PM

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QUOTE(jas029 @ Nov 9 2020, 04:42 PM)
bro, since there are no distribution for VUAA, does the accumulated dividend subject to the 15% withholding tax as well?
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Yes, dividend paid out of company already net of the 15% WHT, even though you don't get any "dividends from fund". So, the "reinvested/accumulated dividend" is net of 15% already.
jas029
post Nov 11 2020, 02:53 PM

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QUOTE(TOS @ Nov 9 2020, 04:51 PM)
Yes, dividend paid out of company already net of the 15% WHT, even though you don't get any "dividends from fund". So, the "reinvested/accumulated dividend" is net of 15% already.
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ok thanks with the info..

also with the accumulated dividend, will we get extra units/shares after the payout/reinvestment?
SUSTOS
post Nov 11 2020, 04:03 PM

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QUOTE(jas029 @ Nov 11 2020, 02:53 PM)
ok thanks with the info..

also with the accumulated dividend, will we get extra units/shares after the payout/reinvestment?
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No extra units/shares, since dividends already accumulated via increase in NAV per unit, it's factored in. Since no distribution, that means only NAV increase, you count your returns by comparing earlier NAV and final NAV to determine your return, easy and straightforward.
jas029
post Nov 11 2020, 04:30 PM

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QUOTE(TOS @ Nov 11 2020, 04:03 PM)
No extra units/shares, since dividends already accumulated via increase in NAV per unit, it's factored in. Since no distribution, that means only NAV increase, you count your returns by comparing earlier NAV and final NAV to determine your return, easy and straightforward.
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ok got it thumbsup.gif

thanks for sharing
tonytyk
post Nov 12 2020, 07:50 PM

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QUOTE(Ramjade @ Oct 7 2020, 10:42 AM)
Etf end of the day is about selling. Is not for dividends.

Not all companies cut dividends. Majority or my portfolio , did not cut dividend but in fact increase it. I don't do ETF with exception of maybe CXSE cause no money to buy 1 lot of tencent.

Drop, I buy some more.

No Ark is the company, They have a few ETFs. You can pick which one you like.

Wahed also keep converting money everytime you buy. Whether you make or lose money is usually known when you are finally ready to exit your investment. Converting money must also be smart. Use banks and your expense is more.
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Which platform you use to purchase the ETF?

Ramjade
post Nov 12 2020, 09:41 PM

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QUOTE(tonytyk @ Nov 12 2020, 07:50 PM)
Which platform you use to purchase the ETF?
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Depend on which brokerage you open with.
Cheapest is Trading212 as you can buy fractional shares and zero commission. Only con is when you withdraw you pay huge commission to Malaysian banks in terms of exchange rate, fees.
Alternatively use Interactive Broker (IBKR). I use whitelabels of IBKR as I don't have USD100k cash or stock with them.

If you like someone to do the buying for you (which I am totally against), go get yourself a stashaway account. I only use stashaway for parking my money (stashaway sg simple)
tadashi987
post Nov 17 2020, 08:53 PM

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Convertibles

is anyone here looking at or holding convertible ETF?

seem to be a ETF which hold asset having exposure to both bond and equities

This post has been edited by tadashi987: Nov 17 2020, 08:53 PM
dynames41
post Dec 3 2020, 11:41 AM

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Hi all, it's been a while since i last visited here.

For IBKR/TSG funding is cimb click > fastsaver > ibkr is still the best method around? Or are there other more efficient cost-saving routes out there?

Apologies if this was already been made clear before, but the pinned msg still recommend the above method. sweat.gif sweat.gif sweat.gif
tadashi987
post Dec 4 2020, 12:47 AM

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QUOTE(dynames41 @ Dec 3 2020, 11:41 AM)
Hi all, it's been a while since i last visited here.

For IBKR/TSG funding is cimb click > fastsaver > ibkr is still the best method around? Or are there other more efficient cost-saving routes out there?

Apologies if this was already been made clear before, but the pinned msg still recommend the above method.  sweat.gif  sweat.gif  sweat.gif
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AFAIK it is still the best way smile.gif
Ramjade
post Dec 4 2020, 10:32 AM

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QUOTE(dynames41 @ Dec 3 2020, 11:41 AM)
Hi all, it's been a while since i last visited here.

For IBKR/TSG funding is cimb click > fastsaver > ibkr is still the best method around? Or are there other more efficient cost-saving routes out there?

Apologies if this was already been made clear before, but the pinned msg still recommend the above method.  sweat.gif  sweat.gif  sweat.gif
*
QUOTE(tadashi987 @ Dec 4 2020, 12:47 AM)
AFAIK it is still the best way  smile.gif
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Actually wrong. That's the worse way.
It should be CIMB my > instarem/money match/Bigpay/TransferWise/Sunway money > fast saver
tadashi987
post Dec 4 2020, 10:38 AM

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QUOTE(Ramjade @ Dec 4 2020, 10:32 AM)
Actually wrong. That's the worse way.
It should be CIMB my > instarem/money match/Bigpay/TransferWise/Sunway money > fast saver
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oh ya i mistaken sweat.gif i read it as local bank -> instarem > cimb click, my bad doh.gif
dynames41
post Dec 10 2020, 12:09 PM

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QUOTE(Ramjade @ Dec 4 2020, 10:32 AM)
Actually wrong. That's the worse way.
It should be CIMB my > instarem/money match/Bigpay/TransferWise/Sunway money > fast saver
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Wowww...so much fintech services to choose from... rclxm9.gif rclxm9.gif rclxm9.gif thank you @Ramjade , @tadashi987 smile.gif


jutamind
post Dec 10 2020, 12:40 PM

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I think MoneyMatch won't allow the transfer if you tell them the transfer is for investment. I have 1 transaction rejected previously for to this reason

QUOTE(Ramjade @ Dec 4 2020, 10:32 AM)
Actually wrong. That's the worse way.
It should be CIMB my > instarem/money match/Bigpay/TransferWise/Sunway money > fast saver
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kart
post Dec 11 2020, 09:22 AM

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QUOTE(Ramjade @ Dec 10 2020, 08:19 PM)
Buy ark directly from US market. You pay half price for fees.
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Correct me if I am wrong, but I believe you said that you dislike investing in ETF and index fund. Do you have any reasons for that?

Thank you for your clarification, Ramjade. smile.gif

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