TradePlus Shariah Gold Tracker marks Malaysia’s first commodity ETF

Dec 6th, 2017 | By | Category: Commodities

Kuala Lumpur-based Affin Hwang Asset Management has launched the TradePlus Shariah Gold Tracker (GOLDETF MK) on Bursa Malaysia Berhad, the first commodity-tracking ETF listed in Malaysia.

TradePlus Shariah Gold Tracker marks Malaysia’s first commodity ETF

GOLDETF provides a Shariah-compliant means of accessing gold exposure.

The fund provides investors with exposure to gold through a shariah-compliant investment structure.

The fund tracks the LBMA Gold Price AM Index by investing in physical gold bars purchased from London Bullion Market Association-accredited refineries, with the remaining balance invested in Islamic money market instruments.

GOLDETF is not only Malaysia’s first commodity ETF to hit the market but also marks Affin Hwang’s debut ETF.

Commenting on the launch, Teng Chee Wai, managing director, Affin Hwang AM, said: “We are proud to roll out our first ETF to the market, which will enhance our overall product offerings and provide a broader suite of solutions for our investors.

“Our move to enter into the passive investment space is a natural path for us, to expand our investment offerings and capabilities to continue to be a distinguished asset management player in the industry. With no similar offerings, the fund is the first of its kind in the domestic market and will provide investors with a low-cost and efficient entry point to gain exposure to gold.”

Datuk Seri Tajuddin Atan, CEO, Bursa Malaysia Berhad, added, “We are very excited with the listing of Malaysia’s first shariah-compliant commodity ETF. This ETF will allow investors to buy and sell gold in the same manner as trading shares on Bursa Malaysia: easy, low cost and transparent. Bursa Malaysia has rolled out several initiatives to support ETF listing and trading, aimed at improving liquidity and vibrancy of the Malaysian ETF market.”

The government of Malaysia has also announced that ETFs traded on Bursa Malaysia will be exempted from stamp duty starting from 1 January 2018 in a move which is set to further spur ETF trading in the country.

Gold plays a significant role in investors’ portfolios including as a natural hedge against extreme market conditions – due to its safe-haven status – as well as a general diversifier due to its low correlation with other asset classes.

GOLDETF’s annual fees (including management, trustee and custody fees) is 0.76%.

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