Exchange Trade Fund

Exchange Trade Fund (ETF) is a fund to buy into all the shares according to the index.

A simple understanding of ETF is; an index stock.

In Bursa Malaysia, we have FBMKLCI. This is the index stock of KLCI. The price of FBMKLCI will move according to KLCI.

Let say today KLCI closing at 1294 points; then FBMKLCI will close at RM 1.294

If you does like index a lot; this will be your choice of stock to invest. You can trade like other stocks.

Having this stock is like investing in all shares in KLCI index (Please remember KLCI is just based on TOP 30 company)

ETF will trade freely in the market; But the price is very very near to the NAV of the index

ETF will announce the NAV daily; and will give out dividen in a fixed period.