Anyone buy ETF like FBMKLCI-EA? Is the trading fees still the same as the usual trading stock?

I think there is fees involved?

Management Fee:
0.50% p.a. of the NAV of the Fund

Trustee Fee:
0.06% p.a. of the NAV of the Fund


So it is unattractive?

This post has been edited by kelvinfixx: May 13 2020, 09:23 AM

Trading fee is cheaper than normal trading as etf is not charge wirh stamp duty. The management fee and trustee fee is not charged on transaction but charged on the fund. This is normal for all ETF in the world..

But I don't like 0820EA, very bad liquidity n tracking. There are other more decent ETFs on bursa that I own.

Agree completely regarding the bad liquidity and tracking , what other ETFs do you own from Bursa, besides GOLDETF, liquidity is good on those ?

I have these ETFs on Bursa:

0800EA Bond ETF. Good if Malaysian interest rate keeps dropping. YTD Returns: +5.23%
0829EA New China, basically Tencent and Baba under one name. YTD Returns: + 3.28%
0828EA Gold etf. YTD Returns: +17.9%

The above are decent liquidity. And do not confuse liquidity with traded volume. Monitor the bid and ask volume.

Basically, I use ETF to get into asset classes which are hard/inconvenient to access or to markets which I'm too lazy to research. I also own some other ETFs outside Bursa for the same reasons. I'm big into diversification.

For Malaysian and SG equity, my preference will be to buy the stocks directly.

This post has been edited by Cubalagi: May 13 2020, 11:02 AM

Nice,

good choices, yeah, i diversified into the above via FSM and some HK ETFS

Thanks for sharing!

Okay you have listed a few.

This post has been edited by kelvinfixx: May 13 2020, 11:33 AM

Good choices. wah 0829EA is so expensive.

Expensive?

SPY in US is USD286 per share.. 😆

2 new ETFs will be listed tomorrow on bursa. Both BY affin Hwang. I got to attend a talk about it and went through the prospectus.

1) Asia ex-Japan REITS ETF (0837EA)

The ETF invests in a basket of Reits in the Asia Pac region with highest "sustainable" dividend yields. No suprise, most of the reits will be those listed in Singapore and HK. They target quarterly dividend payout.

The prospectus only stated their top 10 holdings, so here I state the top 5 holdings:
Ascendas reit
Link reit
Capital Mall reit
Mapletree North Asia reit
Fraser's Logistics reit

Full holdings should be disclosed tomorrow in bursa announcement.

Further info:

https://tradeplus.com.my/msci-jpn-reits

2) Malaysia Momentum Tracker ETF (0836EA)

This ETF invest in 20 Malaysian stocks with the strongest price momentum for each quarter. Basically, the ETF try to capitalize on the well known market phenomenon that stocks that performs well tend to continue to perform well and stocks that lag continue to lag.

Top 5 stocks in the ETF:

Supermax
Top Glove
Kossan Rubber
Hartalega
Dialog

Looks like a Gloves ETF.. 😆

Full holdings can be found at the announcements sections of the ETF from tomorrow.

Further info:
https://tradeplus.com.my/dwa-my-momentum

P/S I always liked ETF and welcomes more of them in bursa.

i wish there are more ETFs in bursa. in theory, public mutual has more availability, and can track the indexes better, from usa to asean to usa to HK but the 6% upfront fee to enter this walled garden makes it a no-go.

This post has been edited by Medufsaid: Jul 14 2020, 10:02 PM

Thanks for the recommendation.

I have looked through Affin website.

The New China Economy and Reits are attractive to me. However, the China one has not declare dividend yet. Just my curious is that normal that the fund are unable to outperform the index fund? I saw this in their annual report.

For the Reits, may I know if buying through Rakuten (nominee)/ any direct account, does the costs involve is only the brokerage fee, clearing fee and SST? Will nominee account/direct account provider charge us the management fee, trustee fee and index licence fee (total would be 1.015% of our NAV)? Secondly, does the 1.015% fee is charged at the end of the ETF financial year (once per year)?

Sorry, I do not have any experience on buying ETF on open market, just using Wahed to buy ETF.

Hi

For the New China ETF. I don't expect any dividends from it.
Most of the stocks in the ETF are growth tech types which are not dividend paying. Theoretically, the ETF can still pay dividends but it would be quite rare. Invest for capital gains. It's like investing in stocks like Amazon or Tesla. You don't invest for dividends.

The reits etf is expected to pay regular Dividends.

Buying any etf is just like buying stocks. So it's brokerage, clearing fee n SST. No stamp duty. N You don't pay the other fees.

Since u mentioned Wahed, if u are buying etf directly you are bypassing one intermediary and save on fees. Of course, now u have to select your own etfs and monitor yourself.

This post has been edited by Cubalagi: Jul 15 2020, 08:19 AM

Interesting, never heard of any of these, glad I found this thread.

Question: How does the New China fund moves according to Alibaba and Tencent? Its currently priced at RM 7.46.

Also, do we have to buy 1 lot as minimum too?

Ya, 1 lot (100 shares) minimum. But watch out for min brokerage when you buy small.

Baba and Tencent are the 2 biggest components of this ETF. At about 20%. But the 80% are other Chinese stocks like JD, Bidu, Meituan. They also have insurance companies like AIA. ETF is a basket of stocks, so you get the benefit of less volatility from diversification but at the price of lower returns of the top performing stocks in the basket.

As comparison, Baba and Tencent are up 40+% in 1 year. The New China Tracker ETF is up 31.5% only.

This post has been edited by Cubalagi: Jul 15 2020, 09:03 AM

Thanks for the reply.

However, could you explain a bit how the fees is being charged for the management fee, trustee and index licence fee? Is it incur during the buying day or count small amount daily (average out in a year)?

In average, how much do you DCA in order to maximise the fee?

Just finding out that there do report Dividend income in their profit and loss statement for the China ETF for the year 2019. If this is the dividend they received on behalf of the customer investment then maybe they have the right to declare it to investor or keep it. Yet, this is just my opinion.

Boss, you seem very knowledge and very, all also got.... so can I tumpang ask... can I lose money in etf? and what are the risks in etf?

An ETF works like a unit trust, only cheaper. So the management fees will be charged on the fund itself on a regular basis. This will ultimately be reflected in the fund NAV, and will impact the market price.

For the New China etf, as I said I don't expect dividends to be paid even though it may happen. Any dividends they receive I expect will be plough back into the stocks. If you are looking for dividends look at other ETFs. Maybe a bond etf or a reit ETF.

This post has been edited by Cubalagi: Jul 15 2020, 10:17 AM

Can lose money one.. Standard market risk. This will depend on the market the ETF is investing in. But you minimize single stock risk.

Oh.. same standard market risk exist....

this looks like ... having a chunk of meat going to the managers of the etfs... (am i wrong?)

if that's the case... with me taking the same standard market risk... for me, it looks like a no brainer to go hunt where the real meat is.


I shall give it a pass la..
not my game...



This post has been edited by Boon3: Jul 15 2020, 10:28 AM

Pros like u no need to invest in ETF.! Too little meat as u said.

But I give u an example how etf is used. Let's say now u think is a good time to buy into airlines related stock. Because you look at SARS experience, airlines stocks jumped a lot once pandemic was over. But you not sure which airlines, and for sure you hated AirAsia.. 😆. So u not sure whether to buy SIA, Delta or SATS or MAHB. U haven't the time to do really in depth research. So.. u just buy JETS. That's an ETF that invests in global airlines business.

So it's the same thought process for S&P500, Qqq, bond etfs, commodity etfs etc.