Investing in an ETF has always been an option investors look out for. But the question remains on what types of ETF funds would an investor be best suited? This is the question we posed to Malaysia's very own fund house, i-VCAP.
"i-VCAP was incorporated on 25 October 2007 and is a holder of the Capital Markets Services Licence (CMSL) issued by the Securities Commission Malaysia" CEO Khairi Shahrin Arief Baki explains. "We operate under the Capital Markets and Services Act 2007 and whatever we do, we would do it in a Shariah-compliant manner."
Khairi Shahrin sits on the Board of Directors of the firm and he is also on their Investment Committee and Board Audit & Risk Management Committee. As at 31 December 2017, i-VCAP has an authorised share capital of RM100 million and issued and paid-up capital of RM11 million comprising 11 million ordinary shares of RM1.00 each.
"When we launched the MyETF Dow Jones U.S. Titans 50 Fund, or US Titans for short, we did it with the Malaysian investors in mind," says Khairi. "The Fund's objective is to closely correspond to the performance of the Benchmark Index, regardless of its performance. The Fund Manager attempts to achieve an absolute value of tracking error of less than 3 percent between the net asset value (NAV) of the Fund and the Benchmark Index. Ordinary brokerage commissions may apply," he explains.
i-VCAP is a wholly owned subsidiary of Valuecap Sdn Bhd, which in turn is equally owned by Khazanah Nasional Berhad, Permodalan Nasional Berhad and Kumpulan Wang Persaraan. This is the first time the firm is launching an ETF of this scale and form.
"This Fund's Benchmark Index, namely the Dow Jones Islamic Market U.S. Titans 50 Index is a float-adjusted market capitalisation weighted, price return index calculated, maintained and published by S&P Dow Jones Indices," Khairi elaborates.
"The Benchmark Index was created with a base date of 29 December 1995 by S&P Dow Jones Indices and was constructed based on a reference value of 1000. The Benchmark Index is designed as a performance benchmark of 50 largest companies by float-adjusted market capitalisation listed on the Relevant Exchanges which have passed rules-based screens for Shariah compliance."
To find out more about this fund and its propensity to grow watch the full interview below.