TAUFIQ A105032

UKM BANGI
MALAYSIA
A statistical indicator providing a
representation of the value of the
securities which constitute it.
Indices often serve as barometers
for a given market or industry and
benchmarks against which financial
or economic performance is
measured.

For an example, a stock index, for

instance, would measure change in
selected stock prices. A good
example of an index that we have all
heard about is the Kuala Lumpur
Composite Index, more commonly
known as the KLCI.
 2 way s t o
inv est in an
index

Unit Exchange
Trust Trade
Fund Fund
Collective investment scheme that allows
investors with similar investment
objectives to pool their funds to be
invested in a single portfolio of securities
managed by professional fund managers.

The categories of unit trust are equity UT,

property UT, balanced and diversified UT;
and Islamic UT.
Diversification / Spread of risk
Professional Management
Liquidity
Ease of purchase
Investment opportunities
Affordable Investment
 An Exchange Traded Fund (ETF) is a type of
fund that tracks an index, but can be traded like
a stock. Because ETFs are traded on stock
exchanges, they can be bought and sold at any
time during the day

• ETF is a new type of investment vehicle offered

on the Bursa Malaysia. When you buy an ETF,
you enjoy exposure to this entire portfolio of
securities with only one purchase. And you can
sell it in a single transaction as well.
• DIAMONDs (Diamonds Trust Series I )
• FITRs ( Fixed income exchange traded securities )
• HOLDRs ( Holding company depository receipts )
• iShares ( iShares - possibly "index shares“ )
• QUBEs ( Nasdaq-100 tracking stock (QQQ) )
• Spiders ( Standard & Poors' Depository Receipts
(SPDRs) )
• StreetTracks ( StreetTracks - State Street Global
Advisor ETFs )
• VIPERs ( Vanguard Index Participation Receipts )
• One common type of ETF is an index Tracking
Exchange Traded Fund .This kind of fund is made
up of a basket of securities ( equities, bonds, or a
combination) designed to track the performance of
a specific index.
• The first exchange-traded
equity ETF listed on Bursa
Malaysia.
• The ETF invest in a group
of stocks comprising the
30 largest companies in
the FTSE Bursa Malaysia
Emas Index.
• Below are the 30 largest
companies which
constructed equities ETF
and historical benchmark
movement .
The first exchange-traded
bond ETF listed on Bursa
Malaysia

This ETF invests in a basket

of Ringgit denominated
Government & quasi-
Government bonds in the
iBoxx ABF Malaysia Bond
Index
 ETFs Un it T ru st Fu nd s
TRANSACTION METHOD
Traded publicly on Bursa Malaysia based on Traded publicly on Bursa Malaysia based on
its trading price. its trading price.
TRADING TIMES
Available for trading throughout Bursa Each fund has its own set dealing days.
Malaysia’s trading day. Buying and selling is These may not be every business day. Buy
carried out on a real-time basis throughout and sell orders are executed at the end of
the trading day. each dealing day.
TRADING CHANNELS
Trading can be carried out via any firm or Buy and sell orders can only be handled by
financial institution licensed by or registered the index fund’s manager or its appointed
with Bursa Malaysia to deal in securities. distributors.

FUND INFORMATION
Market price and trading activity data is Information is usually available from the
readily available on Bursa Malaysia’s website fund manager and from the fund’s appointed
or through any quote vendor. Information is distributors.
also available from licensed securities
dealers and usually on the ETF’s own
website.
• Div ersific atio n - ETF provides you with a
diversified portfolio of instruments – all in a
single fund.

• Low co st in vestm ent - ETF offers low

expense ratio, generally lower than unit trusts.
The transaction cost is similar to trading of
ordinary shares.

• Easy a cc ess to in fo rm at io n - Market

price of an ETF is available on real-time
throughout the trading day at the Bursa
Malaysia.

• Liquid ity & fle xib ility  - You may buy or

sell ETFs through your remisier or via online
trading during normal trading hours similar to
an equity. Like traditional stocks, ETFs can be
traded intraday.