ETF Performance Report - February 2023
- ETFs’ total volume/value traded contracted to 1.88 mil units/RM5.08 mil in February 2023 from its 18-months high in January 2023 (47.27 mil units/RM57.63 mil), bringing the YTD total volume/value traded to 49.14 mil units/RM62.72 mil. The contraction was principally led by ABF Msia Bond Index Fund (ABFMY1) with its total volume/value fell by 45.08 mil units/RM52.52 mil MoM after a one-off direct business transaction on 16 January 2023. Notably, both total volume/value traded in FTSE Bursa Malaysia KLCI ETF (FBMKLCI-EA) slowed by 68% MoM as sentiment turned cautious ahead of the retabling of Budget 2023 on 24 February 2023. Excluding direct business transaction, February’s trading activities was lower than the 6-month average monthly volume/value traded of 2.55 mil units/RM6.45 mil.
- On a combined basis, the 6 China-centric ETFs saw their total value traded grew by 33% MoM to RM3.08 mil in February (January: RM2.32 mil) after 3 consecutive months of contraction. Investors’ interests for the month were highly skewed towards the Tradeplus S&P New China Tracker-MYR (CHINAETF-MYR) as key China equities index gained on hopes of China recovery outweighed concerns about further hikes in U.S. interest rates. MoM, CHINAETF-MYR saw its traded value jumped by 87% MoM to RM2.32 mil, contributing to 46% of overall trading value, making it the most traded ETF by value and second most traded by volume.
- Trading interest in the Tradeplus Shariah Gold Tracker (GOLDETF) - one of the top traded ETFs remained subdued as the yellow metal’s prices retraced from its YTD peak since 1 February 2023 amid the rebound of both US Treasury yield and USD. MoM, total volume and value traded for GOLDETF moderated by 8.5% and 9.8% respectively to 407K units and RM1.04 mil, which contributed 20% to the ETF market’s overall traded value in February.
