Extra-Traded Fund

Question 1

ETF is a financial product known as Exchange Traded Fund, It is an open-ended investment fund listed and traded on a stock exchange. Generally, there are three types of ETFs which are equity ETFs, fixed income ETFs and commodity ETFs. In Bursa Malaysia, there are five listed ETFs, which fours are categorized as equity ETF, and one is categorized as Fixed Income ETF.

5 listed Exchange Traded Funds (ETF) | Type of Exchange Traded Funds (ETF) | (a) Stock Code | (b) Benchmark Index | (c) Closing prices at the end of October 2013. |

CIMB FTSE ASEAN 40 MALAYSIA | Equity ETF | 0822EA | FTSE/ASEAN 40 Index | 1.705 |

CIMB FTSE CHINA 25 | Equity ETF | 0823EA | FTSE/Xinhua China 25 Index | 0.9700 |

FTSE Bursa Malaysia KLCI ETF | Equity ETF | 0820EA | FTSE Bursa Malaysia KLCI Index | 1.800 |

MyETF Dow Jones Islamic Market Malaysia Titans 25 | Equity ETF | 0821EA | Dow Jones Islamic Market Malaysia Titans 25 Index | 1.180 |

ABF Malaysia Bond Index Fund | Fixed Income ETF | 0800EA | Markit iBoxx ® ABF Malaysia Bond Index | 1.097 |

Question 2

Real Estate Investment Trusts (REITs) also known as a key asset class in an investment portfolio. Currently, there is a total of 17 company (including Islamic REITs) listed in Bursa Malaysia under the category of Real Estate Investment Trusts (REITs).

Real Estate Investment Trusts (REITs) | Closing prices at the end of September 2013. |

TOWER REAL ESTATE INVESTMENT TRUST | 1.540 |

STARHILL REAL ESTATE INVESTMENT TRUST

| 1.010 |

SUNWAY REAL ESTATE INVESTMENT TRUST | 1.330 |

PAVILION REAL ESTATE INVESTMENT TRUST | 1.350 |

UOA REAL ESTATE INVESTMENT TRUST | 1.460 |

Question 3

There is always a relationship between risk and return, every investments would have some potential risk exists.

Interest rate Risk

Interest risk is referred to the variability in a security’s return resulting from changes in level of interest rates. It is sensitive which will be easily affected by inflation,...