An Exchange-Traded Fund (ETF) is like buying a basket of stocks or bonds in one go. Instead of choosing individual companies, you invest in an entire index, such as the FTSE Bursa Malaysia KLCI, with just one trade. Traded like stocks on Bursa Malaysia, ETFs offer diversification, low fees, and transparency, making them ideal for passive investors.
Most ETFs in Malaysia are passively managed, tracking specific indices. There are two categories: conventional and Shariah-compliant ETFs. This guide focuses solely on conventional ETFs listed on Bursa Malaysia in 2025.
Why More Malaysians Are Turning to ETFs in 2025
- Diversification: A single ETF can provide exposure to 30 top Malaysian stocks, ASEAN giants, or China tech.
- Low Fees: Management fees typically stay under 1%, with no upfront sales charges like unit trusts.
- Liquidity: Buy and sell ETFs anytime during market hours, just like shares.
- Transparency: Holdings and real-time indicative prices (iNAVs) are publicly available.
- Accessibility: With board lots of 100 units, you can start investing with just a few hundred ringgit.
List of Best Conventional ETFs on Bursa Malaysia (2025)
| ETF Name | Code | Focus | Asset Class | Avg. TER | Yield (TTM) | AUM (RM) |
|---|---|---|---|---|---|---|
| ABF Malaysia Bond Index Fund | 0800EA | Malaysia Govt Bonds | Fixed Income | ~0.14% | 3.3%–7.3% | 1.8B |
| FTSE Bursa Malaysia KLCI ETF | 0820EA | Top 30 Malaysian Companies | Equity (Large Cap) | ~0.55% | 3%–4.1% | 5.5M |
| FTSE ASEAN 40 Malaysia ETF | 0822EA | ASEAN Region (SG, ID, TH) | Equity (ASEAN) | ~0.08% | ~4.2% | 2.2M |
| FTSE China 50 ETF | 0823EA | China Large-Cap (HK listed) | Equity (China) | ~0.72% | Low/Zero | 6.1M |
| S&P New China Tracker (MYR) | 0829EA | China Tech/Consumer (New) | Equity (China) | ~0.50% | Low/Zero | 56.9M |
| S&P New China Tracker (USD) | 0829EB | Same as above, USD-traded | Equity (China) | ~0.50% | Low/Zero | ~0.06M USD |
Top Performing ETFs (2023–2025): Who’s Leading?
| Rank | ETF Code | Focus | 1Y Return | 5Y CAGR |
| 1 | 0822EA | ASEAN 40 | ~5.2% | ~12.2% |
| 2 | 0800EA | Malaysia Bond Index | ~4.1–8.0% | ~1.5–4.5% |
| 3 | 0820EA | KLCI ETF | ~0.3–16% | ~3.1–4.1% |
| 4 | 0823EA | China 50 | ~26–36% | -19.4% to -11% |
| 5/6 | 0829EA/B | New China | ~3.4–17.5% | -21.3% to -17% |
Getting Started: How to Buy ETFs on Bursa Malaysia in 2025
- Open a CDS + Trading Account
- Online brokers: Rakuten Trade, M+ Online, FSMOne
- Required: IC/passport, bank account, proof of income (some cases)
- Fund Your Account
- Most platforms allow small deposits (RM100–RM1,000)
- Search and Buy
- Use ETF code (e.g., 0820EA), choose quantity (100+ units), select limit or market order
- Understand Fees
- Brokerage: ~0.05%–0.1% or RM8–RM28 min
- Clearing: 0.03% capped
- Stamp Duty: RM1 per RM1,000
Should You Use EPF, PRS, or Robo-Advisors to Invest in ETFs?
- EPF i-Invest / PRS: No direct access to ETFs. Only unit trusts.
- Robo-Advisors (StashAway, Wahed): Indirect ETF exposure via curated global portfolios, but with added platform fees.
Real Returns: What RM10,000 Could Become
| ETF | Avg Annual Return | 5Y Value | 10Y Value |
| 0800EA | ~3% | RM11,593 | RM13,439 |
| 0820EA | ~3.5% | RM11,877 | RM14,106 |
| 0823EA | ~-11% to -19% | Substantial Loss |
Risk Factors You Should Know
- Market volatility (especially China ETFs)
- Currency exposure (for ASEAN/China)
- Tracking error
- Low AUM = higher chance of fund closure (e.g. 0836EA, 0837EA delisted)
Conclusion: Best ETF for Different Goals (2025)
| Goal | Recommended ETF |
| Start investing in Malaysia | 0820EA (KLCI ETF) |
| Income + stability | 0800EA (Bond Index) |
| Diversify into ASEAN | 0822EA (ASEAN 40) |
| China – large caps | 0823EA (FTSE China 50) |
| China – tech/consumer | 0829EA/EB (New China) |
Strategy Tip: Use Dollar-Cost Averaging (DCA)
Invest consistently over time, RM300/month into 0820EA or 0822EA can build wealth without trying to time the market. Hold long-term, reinvest dividends, and let compounding work for you.
Final Thought
In 2025, ETFs are no longer a hidden secret. For Malaysians looking to grow their wealth simply and cost-effectively, conventional ETFs on Bursa Malaysia are a powerful tool. Know your goals, pick the right ETF, and stay consistent. That’s how smart investing begins.
Further Reading
- How to Become Rich in Malaysia (2025 Guide)
- REIT Malaysia 2025: How to Invest in Real Estate Without Owning Property
- Malaysia’s Water Investment Boom: Build Wealth with Water Stocks & Rights (2024)
Disclaimer: This article is for informational purposes only. Always do your own research or consult a financial advisor before making trading decisions.
