ETF Performance Report - March 2023
- Trading activities in the ETF space rebounded in March (volume: 3.81 mil units, value: RM7.77 mil) from its 6-months low in February 2023 (volume: 1.88 mil units, value: RM5.08 mil), bringing the total YTD volume/value traded to 52.95 mil units/RM70.49 mil. March’s trading activities was 34%/12% higher than the 6-month average monthly volume/value traded (excluding direct business transaction) of 2.85 mil units/RM6.95 mil which partly attributed to the additional trading days (Mar: 23 days vs Feb: 18 days).
- GOLDETF dominate trading activities in the ETFs sector. Led by the sharp rebound in gold prices in March, GOLDETF saw total volume/value traded jumped by 159%/176% MoM to its 12-months high at 1.05 mil units/RM2.86 mil, contributing 37% (vs Feb: 20%) to the ETF market’s overall traded value in March. The yellow metal’s prices skyrocketed to its highest level since March 2022 amid lower US Treasury yield and softening of USD despite another 25 bps rate hike by the U.S. Federal Reserves. The turmoil in the US regional banking sector also led to a flight to safe-haven assets like gold.
- Trading interest in Malaysia-focused ETFs picked up significantly, with their combined value traded improved by 290% in Mar to RM1.08 mil (Feb: RM278K). This translated into market share of 13.9% in Mar, versus 5.5% in Feb. Within the segment, FBMKLCI-EA’s total volume/value traded jumped 305%/292% MoM respectively to 309K units/RM461K from its 11-months low in Feb, which contributed to 43% of the Malaysia-focused ETFs’ total value traded.
- The 6 China-centric ETFs saw their combined value traded moderated by 15% MoM to RM2.63 mil in Mar (Feb: RM3.08 mil) with the contraction mainly led by CHINAETF-MYR (-48% MoM). Trading activities within the segment was partially supported by CHINA100-MYR which saw its traded volume/value jumped by 95%/87% MoM to 927K mil units/RM1.28 mil, making it the second most traded ETF by value and volume.
