What is an Exchange Traded Fund?

An Exchange Traded Fund (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.

Like a unit trust fund, an ETF allows you to have investment exposure to this collection of securities without the cost or hassle of buying all the securities individually. But unlike most unit trusts, it is traded on the Bursa, giving you greater flexibility to buy or sell it anytime, through any remisier or broker. And just like trading in specific stocks, you can buy or sell this fund through your broker at any time during the trading day.

There are many types of Exchange Traded Funds. Some may track specific sectors or industry groups; some may invest in bonds or other securities.

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. Being passively managed, the fund incurs less management fees, thus giving you cost-effective exposure to specific markets or sectors.


ETF Features
Why Buy an ETF
Comparing ETFs and Equities
Comparing ETF and Unit Trust Funds
Risks
FAQs
     
     

Disclaimer

AmInvestment Services Bhd

We recommend that you read and understand the contents of the Prospectus for ABF Malaysia Bond Index Fund ("the Fund") dated 13 July 2008 (and expires on 12 July 2009) that has been registered with Securities Commission, who takes no responsibility to its contents before investing. You may view the prospectus from the Fund’s website at www.abfmy1.com.my or visit us at our nearest representative office for a copy of the prospectus. Unit prices and income distribution, if any, may rise or fall. Past performance of a fund is not indicative of future performance. Please consider the fees, charges and risks involved including, but not limited to the risk that units may be delisted from Bursa Malaysia, market risk, tracking error and the risks relating to the Benchmark Index. AmInvestment Services Berhad does not guarantee any returns on the investments.

iBoxx®
iBoxx® is a registered trademark of International Index Company Limited ("IIC") and has been licensed for the use by AmInvestment Services Berhad ("AIS") and/or its affiliates. IIC does not approve, endorse or recommend AIS and/or its affiliates or the ABF Malaysia Bond Index Fund. This product is not sponsored, endorsed or sold by IIC and IIC makes no representation regarding the suitability of investing in the product.

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