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 Malaysia ETF actual expense to ratio cost

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TSsilver.v
post Aug 4 2020, 11:26 AM, updated 4y ago

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Hi ,


I read the latest FTSE Bursa Malaysia KLCI ETF annual report , it stated management expenses is 1.2% of NAV , while the fund spect stated the management fees max is at 0.5% .

Is this common for Malaysia ETF to spend beyond the expense ratio limit ?

I have invested in SG and US ETF ... all expense ratio are align with the fund prospect .

is Malaysia ETF regulated ?
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This post has been edited by silver.v: Aug 4 2020, 11:44 AM
MUM
post Aug 4 2020, 11:30 AM

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QUOTE(silver.v @ Aug 4 2020, 11:26 AM)
Hi ,
I read the latest FTSE Bursa Malaysia KLCI ETF annual report , it stated management expenses is 1.2% of NAV , while the fund spect stated the management fees max is at 0.5% .

Is this common for Malaysia ETF to spend beyond the expense ratio limit ?

I have invested in SG and US ETF ... all expense ratio are align with the fund prospect .

is Malaysia ETF regulated ?
*
would be much happy, if you could insert some screenshot or images of those...
or link to those info (include page number if possible) for ease of readings.
notworthy.gif

This post has been edited by MUM: Aug 4 2020, 11:34 AM
TSsilver.v
post Aug 4 2020, 11:46 AM

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QUOTE(MUM @ Aug 4 2020, 11:30 AM)
would be much happy, if you could insert some screenshot or images of those...
or link to those info (include page number if possible) for ease of readings.
notworthy.gif
*
Added screenshot ..

Seems Malaysia ETF are not restricted to charge more than the announce expense ratio ....This is not allow in US and Singapore market

This means Malaysia ETF will eat into the investment profit And give bad growth return .
honsiong
post Aug 4 2020, 11:47 AM

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QUOTE(silver.v @ Aug 4 2020, 11:26 AM)
Hi ,
I read the latest FTSE Bursa Malaysia KLCI ETF annual report , it stated management expenses is 1.2% of NAV , while the fund spect stated the management fees max is at 0.5% .

Is this common for Malaysia ETF to spend beyond the expense ratio limit ?

I have invested in SG and US ETF ... all expense ratio are align with the fund prospect .

is Malaysia ETF regulated ?
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I looked into this a bit last year. Most of the ETFs here seem to charge more than advertised expense ratio because their assets under management are just too little, basically they are a flop.

Expense ratio isn't the only concern, look at the trading volume, bid-ask spread just omg /facepalm. Stay away from Malaysia ETFs except the gold ETF and 0800EA bond ETF for now.
GrumpyNooby
post Aug 4 2020, 11:50 AM

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QUOTE(honsiong @ Aug 4 2020, 11:47 AM)
I looked into this a bit last year. Most of the ETFs here seem to charge more than advertised expense ratio because their assets under management are just too little, basically they are a flop.

Expense ratio isn't the only concern, look at the trading volume, bid-ask spread just omg /facepalm. Stay away from Malaysia ETFs except the gold ETF and 0800EA bond ETF for now.
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So basically most of the ETFs in Bursa Malaysia has higher MER due to inefficiency with small trading volume?
TSsilver.v
post Aug 4 2020, 11:55 AM

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No wonder more season investor choose to invest in US SINGAPORE ETF .

Malaysia ETF is a joke ..
honsiong
post Aug 4 2020, 11:57 AM

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QUOTE(GrumpyNooby @ Aug 4 2020, 11:50 AM)
So basically most of the ETFs in Bursa Malaysia has higher MER due to inefficiency with small trading volume?
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MER high due to low assets under management. Bid-ask spread huge because of low trading volume.

Correct me if I am wrong, I am not an expert.


QUOTE(silver.v @ Aug 4 2020, 11:55 AM)
No wonder more season investor choose to invest in US SINGAPORE ETF .

Malaysia ETF is a joke ..
*
Somehow in sinkie telegram groups they diss STI as well, I bought some STI when I worked there actually.
GrumpyNooby
post Aug 4 2020, 11:59 AM

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QUOTE(honsiong @ Aug 4 2020, 11:57 AM)
MER high due to low assets under management. Bid-ask spread huge because of low trading volume.

Correct me if I am wrong, I am not an expert.
Somehow in sinkie telegram groups they diss STI as well, I bought some STI when I worked there actually.
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Sorry, low assets means low quality assets or low valued assets? Or combination of both?
honsiong
post Aug 4 2020, 12:18 PM

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QUOTE(GrumpyNooby @ Aug 4 2020, 11:59 AM)
Sorry, low assets means low quality assets or low valued assets? Or combination of both?
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low "assets under management" - it means the fund size is too small.
GrumpyNooby
post Aug 4 2020, 12:20 PM

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QUOTE(honsiong @ Aug 4 2020, 12:18 PM)
low "assets under management" - it means the fund size is too small.
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Got it! Thanks for the clarification.
rocketm
post Aug 4 2020, 01:36 PM

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QUOTE(honsiong @ Aug 4 2020, 12:57 PM)
MER high due to low assets under management. Bid-ask spread huge because of low trading volume.

Correct me if I am wrong, I am not an expert.
Somehow in sinkie telegram groups they diss STI as well, I bought some STI when I worked there actually.
*
Does this apply to Malaysia ETF focus on Malaysia and other Asian countries?

Recently, I invested in TRADEPLUS MSCI ASIA EX JAPAN REITS. Thinking can save time in opening account, select which reit and exchange conversion while still can collect some dividends.

Based on their published info, their expenses in % is still below the allowable.

Will this one have the same situation?
GrumpyNooby
post Aug 4 2020, 01:40 PM

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QUOTE(rocketm @ Aug 4 2020, 01:36 PM)
Does this apply to Malaysia ETF focus on Malaysia and other Asian countries?

Recently, I invested in TRADEPLUS MSCI ASIA EX JAPAN REITS. Thinking can save time in opening account, select which reit and exchange conversion while still can collect some dividends.

Based on their published info, their expenses in % is still below the allowable.

Will this one have the same situation?
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I think this ETF just launched recently and started to trade mid-July 2020.

Too early say anything now I presumed.
rocketm
post Aug 4 2020, 01:43 PM

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QUOTE(GrumpyNooby @ Aug 4 2020, 02:40 PM)
I think this ETF just launched recently and started to trade mid-July 2020.

Too early say anything now I presumed.
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yes, just launched last month.

Have you invest in? What do you think the company management performance?
GrumpyNooby
post Aug 4 2020, 01:46 PM

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QUOTE(rocketm @ Aug 4 2020, 01:43 PM)
yes, just launched last month.

Have you invest in? What do you think the company management performance?
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TradePlus is by Affin Hwang Asset Management.
Affin Hwang AM is reputable FM.


GrumpyNooby
post Aug 4 2020, 07:28 PM

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For rocketm:

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rocketm
post Aug 4 2020, 08:47 PM

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QUOTE(GrumpyNooby @ Aug 4 2020, 08:28 PM)
For rocketm:

user posted image

Invest RM3,000 or more in Exchange Traded Fund (ETF) products today and stand a chance to enjoy a Touch 'n Go eWallet Reload PIN worth RM150. Don't miss out on this opportunity to diversify your investment portfolio with cashback.

Choose from Commodity, Equity, Fixed Income or Leveraged & Inverse ETFs to suit your investment goals. For the full list of available ETFs and their respective 1-year returns, click HERE (https://www.bursamarketplace.com/etf-cashback/)

*Terms & Conditions

1. Program period is valid from August 3rd to November 2nd, 2020.
2. Investors who invest (buy) one or multiple Bursa-Listed ETFs with cumulative value of RM3,000 and above within the Program period will be eligible to receive a Touch ' Go eWallet Reload PIN worth RM150.
3. All above ETF buy trades must be carried out in the investor's Direct CDS Account.
4. Investors who have not made any buy or sell trades in Bursa-listed ETFs from 1 January 2020 until 2 August 2020 are eligible for this Program.
5. For the full set of Terms and Conditions, please click here (https://www.bursamarketplace.com/etf-cashback/tnc.html).
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Thanks for the info but sadly not qualify as I purchased ETF in this year already.
000022
post Aug 4 2020, 09:09 PM

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https://www.investopedia.com/articles/inves...fees-vs-mer.asp


I dont exactly know much about it, but a quick google make it seem like this is common? as in the management fee is actually just a subset of the MER.

QUOTE(honsiong @ Aug 4 2020, 11:57 AM)
MER high due to low assets under management. Bid-ask spread huge because of low trading volume.

Correct me if I am wrong, I am not an expert.
Somehow in sinkie telegram groups they diss STI as well, I bought some STI when I worked there actually.
*
I think this is key reason, which correlates with the article above

This post has been edited by 000022: Aug 4 2020, 09:11 PM
TSsilver.v
post Aug 6 2020, 01:25 PM

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Malaysia ETF fees are high in comparison to other country .... it make more sense to buy US ETF or London ETF for better investment return for long term investment.



 

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