ETFs are popular among investors because of the attractiveness of lower operating expenses. For example, passively managed ETFs offer the convenience of acquiring top 500 companies from S&P500 in a single transaction, incurring only one brokerage fee. This results in a significantly lower cost for constructing a portfolio compared to actively managed funds like unit trust funds.
Investors can also skip the time-consuming and costly task of picking individual stocks by opting for an ETF, thanks to its diversification.
ETFs provide a convenient way for investors to access various sectors and market segments without having to buy individual securities across the globe. Investing in hard-to-reach markets, like emerging markets, becomes simpler when using ETFs.
Furthermore, ETFs offer investors the flexibility to buy and sell throughout the day, thanks to their liquidity. This liquidity enables swift adaptation to market changes, and effectively managing the risk of exiting the market, just like a stock.
Finally, ETFs are listed and quoted on Bursa Malaysia, providing a broad range of exposure that includes the US, ASEAN and Malaysia. These ETFs are subject to rigorous regulation, registration and approval by the Securities Commission Malaysia.