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.

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

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.

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

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

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.

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.

1-year total returns (based on yesterday closing price) of the Bursa ETFs that I hold long term:

0800 EA Malaysia bond = + 7.81%*

* this include dividends

0828EA Gold = + 26.29%

0829EA New China = + 32.22%

** no dividends for the last two.

ETFs and stocks are a bit different mindsets. I have both stocks and ETFs. And I also own ETFs on SGX and HKEX.

This post has been edited by Cubalagi: Sep 22 2020, 12:40 AM

The Trade plus ETF you own is an ETF that invests in Reits, mostly in Singapore but some Reits in HK, Malaysia n South Korea. A total of 29 reits. Reits are of course consistent dividend payers, so once the ETF has accumulated enough it will start paying dividends.

The performance of this ETF will depend on how the Reit sector in Asia Pac perform, particularly the Singapore Reits. So u have to think ahead, probably 1-2 years ahead after this Covid crisis. This should be a long term and diversification strategiy investment. Not a short term investment. Consider your overall portfolio of investments. If you are clear of why you own it, then don't worry too much about it.

I studied this ETF when they were offering it, but I didnt invest in it. This is because I already have a big chunk exposure to Singapore via other instruments, meaning I already have a exposure to Singapore Reits without this ETF.

Too volatile for my investment style..

N u need to be qualified by a broker.. Not all brokers willing to open this counter for u.



This post has been edited by Cubalagi: Nov 27 2020, 03:54 PM

The regulator when approving this product made it a regulation that investors must ether be sophisticated (high net worth) or have watched a training video before they can trade. The regulation require that broker must check this before customer is allowed to trade it.

https://www.bursaacademy.bursamarketplace.c...estment-journey

Of course, some (many) Malaysian brokers are just too lazy to enforce this, so they just simply don't open it for their customers.

I know for eg. Rakuten doesn't open this for their customers. So u need to try or check with your broker.

Basically ur question is whether to buy an ETF direct (via broker) or indirect (via Robo-advisor).

If direct, u only pay management fee for the ETF but u pay brokerage.

If indirect, you pay management fee for the ETF and the management fee of the robo-advisor, but you do not pay brokerage and there is no sales charge as well.

I would say it would depend on (a) how much you want to invest in and (b) how diligent you are in studying the etfs.

If your ticket size is small, say u want to invest small amounts monthly then go robo-advisor

If you are not diligent to study ETF, n just want to "invest in ETFs" then go robo-advisor.

Otherwise, u should try buy ETF directly or try out both direct n indirect.

This post has been edited by Cubalagi: Jan 31 2021, 09:30 AM

Looking at annualized performance for past 10 years is not the way to invest in ETF. That is mutual fund/unit trust thinking. It's like driving based on looking at rear view mirror.

This post has been edited by Cubalagi: Feb 2 2021, 09:00 AM

An ETF tracks an index. The index is a representation of an aset class, a country or a sector.

So first I will study the index and see if I want such an asset in my portfolio. Then what I do is to have a view of where the index or asset class is going to be in the future. This can be in the form of a high level fundamental macro analysis or a technical analysis or both.

This analysis doesn't have to be too complicated. However, looking at annualized return is not helpful and can even be misleading. U can miss huge rallies and be entering at market peaks. I saw this happen to many unit trust investors. They were seduced by high annualized 5 year returns shown by unit trust salesmen, withdrew their EPF and then came to regret. Last year, if one base decision on past average historical returns, one would have missed the big equities rally. This is what I mean by driving using rear view mirror.

This post has been edited by Cubalagi: Feb 6 2021, 09:40 AM

I think you are not getting me. It doesn't really matter much whether it's 10 year or 5 years annualized returns. Instead, focus your research on future trends.

Btw the biggest and probably the most popular ETF in the world is the SPDR S&P500 ETF, ticker "SPY". Listed in NYSE. It's average annual return for 10 years is 13.39% per year, for 5 years it's 16.16% per year. That's very good track record. If u want to buy ETF based on past returns, I think this ETF is probably a good bet. But remember that past performance doesn't guarantee future performance, as the Unit Trust prospectuses say.

For the S&P500, most forumners here seem to prefer to buy the European analogue, to save on witholding tax. Same analogue can also be bought in Singapore or in Hong Kong.

On Bursa, the closest one to SPY is probably the Dow Jones Islamic 50. However, my favourite ETF on Bursa is 0829EA New China Tracker..50% return 1 year.

All the best to u.

This post has been edited by Cubalagi: Feb 10 2021, 09:38 PM

TER is wider definition of costs incurred by the fund than the one you showed. So it's common for TER to be higher.

If u can't find it anywhere else, you have to look at the annual report.

Tbh I don't really look into TER so much too. I just see the standard expenses. But I also try to keep brokerage n forex low.

N I don't normally hold ETF long enough that such difference of say 0.2% per anum will really matter.

This post has been edited by Cubalagi: Feb 13 2021, 07:13 PM

Let me give you one example which you can study.

One of the oldest China ETF is named FXI, listed in US. More than 15 years old.

The annualized 10-year return of this ETF is... Wait for it....

2.72% per year

Very lousy right? You would have been better to put your money in an FD with less heartache.

But study the price chart. China tend to be volatile and so is this ETF. Within this 10 year period there were 3 times where you can get around 50% in a year or so if u buy at the bottom. Similarly, if you don't exit during this peaks, you would experience 30-40% drawdown.

Trying to exit at the top and start buying aggressively at the bottom is how I do it. I don't have to buy at the exact bottom or sell at the exact peak, but as long as I can get close then I will be quite profitable.

China being a bit extreme I find it's easier to market time. Basically when people are so bearish about China then it's a good time to start shopping. When the mass retail jump into China, time to start going out.


Why New China Tracker is better than FTSE China 50?

2 reasons:

1) The index is better. FTSE China 50 uses the same index as FXI. A lot of banks and old economy stocks. If I want banks and old economy, I rather put money in Singapore or Malaysia (which I do). New China as the name says has more interesting stocks and its a play on the big changes that is happening in China.

Btw this time last year, if you recall, Covid has spread out of Wuhan. Horror stories. People were dying everywhere. China was doomed (again). Meaning good time to buy China. New China ETF is up 60% since then.

2) I think the fund manager Affin cares more about their ETF. Principal is a big international fund manager, no doubt. However, it's not an ETF manager like Blackrock etc. Principal happen to get this ETF when they took over Cimb Principal. It's like an unwanted child they are stuck with. Affin TradePlus is the new ETF issuer and trying hard. U can compare websites. Or you can also try calling for information. You will get a sense of what Im trying to say.

This post has been edited by Cubalagi: Feb 14 2021, 10:40 AM