EQUITIES

Exchange Traded Funds

 
Open-ended investment funds listed and traded on a stock exchange.
Track, replicate or correspond to the performance of an underlying index or asset.
Provide access to a wide variety of markets and asset classes.
The performance and price are dependent on the value of its underlying asset and the respective index that it is tracking.

Why trade this product with CGS-CIMB?

Available offerings for Exchange Traded Funds

Created by our shareholder, CIMB-Principal Asset Management.

 

Consists of CIMB FTSE ASEAN 40 ETF, CIMB FTSE ASEAN 40 Malaysia ETF, CIMB FTSE China 50 ETF and CIMB S&P Ethical Asia Pacific Dividend ETF.

 

Helps investors to potentially benefit from the latest market trends in the region.

Tracks a specific bond index and provides exposure to the fixed income market.

 

Allows clients to trade Bond ETFs on various established exchanges.

Provide exposure to only one type of commodity or a basket of commodities such as agricultural goods, natural resources and precious metals.

Track, replicate or correspond the performance of the benchmark index that they track.

 

Designed to generate the multiplier results (e.g. a 3x leveraged ETF will have an increase of 3% when the underlying index increase by 1%.) on a daily basis.

Supported platform

CGS-CIMB iTrade

Equipped with an intuitive and interactive platform, offering users a different look as well as all the tools an investor would need for trading.
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CGS-CIMB iTrade Mobile

A suite of mobile solutions on the go. Available on any smartphone or tablet devices (iOS and Android devices), such as placing orders, monitoring your stocks’ performances, viewing your investment portfolio and accessing real-time price and stock-related information on regional and global markets.
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CGS-CIMB iTradePro

The platform comprises a comprehensive suite of innovative trading features, as well as advanced technical and analysis charts. It is specially created to meet the needs of sophisticated traders.
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FAQs

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Open either a Cash Trading Account (CTA) or a Cash Upfront Account (CUT) by contacting our CGS-CIMB Securities Call Centre at1800 6227272 / (65) 62108882 or email clientservices.sg@cgs-cimb.com.

Leveraged and inverse ETFs are designed to track, replicate or correspond to the performance of the underlying benchmark index on a daily basis. Hence these ETFs are for short-term trading.

Provide easy access to multiple assets classes and emerging markets with a click of a mouse.

Allow investors capital efficiency, that is; only a small investment capital required to achieve diversification without the need buy a basket of individual stock or bond.

Open an account now

Simply contact CGS-CIMB Securities to request for an account opening pack.

Key Risks

The key risks associated with ETFs include the following. It is important to note that the list of risks is not exhaustive.
Investors are exposed to market fluctuations.
When you buy an ETF, you receive an ownership stake in a pooled investment. Most ETFs track a target index by holding all, or a representative sample, of the underlying securities that make up the index. Hence, they should track the performance of their indexes and trade close to the Net Asset Value (NAV). A “broken” ETF is one with a huge tracking difference when the trading prices deviate far from its NAV.
Lower levels of liquidity lead to greater bid-ask spreads, larger discrepancies between NAV and the value of the underlying securities, as well as a decreased ability to trade profitably. Primary factors include the composition of the ETF and the trading volume of the individual securities that make up the ETF.
Synthetic ETFs typically hold no actual securities, but instead “engineer” the returns of a specific index. Synthetic ETFs are similar to Physical ETFs, except that instead of holding the underlying securities of an index, the ETF investor owns “swaps” and other collaterals which are used to replicate the holdings. As compared to purchasing the underlying asset itself, using derivatives reduces the fund’s costs, of which these savings are then passed on to investors. While there are regulations that may limit an ETF’s exposure to any one counterparty, the synthetic ETF investor could lose money if a counterparty is unable to pay.

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