ETF: Something new for investors

转载自：
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_6bf99802-cb73c03a-16f70a40-82c6d08d
27-06-2007: ETF: Something new for investors

Local investors will soon have the option to invest in a new type of instrument — Equity Exchange Traded Fund (ETF). The FBM30etf will be the first ETF, introduced by AmInvestment Bank Group, to be listed on the Bursa Malaysia next Monday.

What is an ETF?
An ETF is very similar to open-ended unit trusts. It's an instrument representing a basket of stocks that is most commonly designed to track the performance of all kinds of indices. For example, there could be an ETF to track the KLCI, the Second Board Index; a sector index, like the Property Index; or in this case, the FTSE Bursa Malaysia Large 30 Index. More innovative ETFs can track commodities like oil futures and gold.

Why invest in ETF?
ETFs, like unit trusts, offer investors the benefits of diversification. For instance, an investor buying the FBM30etf will gain exposure to the 30 largest companies by market capitalisation, all in one. In other words, they don't have to fork out a lump sum of money to buy each and every one of the 30 stocks — just the minimal one board lot (or 100 units) of the FBM30etf.

Better yet, ETFs usually has lower expense ratio than comparable unit trusts. Annual management fee for unit trusts usually range between 1% and 2%. By comparison, the annual administrative fees for FBM30etf are estimated to total around 0.65%.

The lower fees and expenses are, primarily, because ETFs are passively managed funds. That means the underlying portfolio of stocks and weightings simply mirror the indices they're tracking. In short, investors do not get the benefit of fund managers stock picking or timing the market. Having said that, it remains arguable whether actively managed funds do perform better over the longer term.

Unit trusts also have higher sales charge, typically 5% or higher, whereas the transaction costs for ETFs are similar to those for normal shares trading including brokerage commission (0.3% to 0.6%), stamp duty and clearing fees.

How to buy and sell ETFs?
Trading in ETFs is also a simpler and more convenient process — it's just like stock trading. Investors can buy or sell the ETF by calling their remisiers at any time during trading hours and using the same trading/CDS accounts. This allows investors to be more responsive to market changes. Transactions are settled in the usual way as stocks are, on T+3.

The price of an ETF is determined by demand and supply but shouldn't stray too far from the market value of its underlying portfolio. ETFs also normally have a dividend policy. The FBM30etf expects to distribute any dividends and interest income it receives semi-annually, after netting expenses.

In a nutshell...
ETFs offer investors a relatively low cost, passive way of investing in the market. Returns will more or less mirror the future performance of the underlying index. Under prevailing trading conditions, we suspect that the FBM30etf will do fairly well.

While sentiment for the broader market has been somewhat ambivalent of late, share prices for key blue chips have been inching higher. The FBM30 Index has risen some 47% since its creation just over a year ago, while cumulative gains year-to-date stand at roughly 25%.

Blueblack Chips and Growth Stocks

最近读了一本书，书名就叫“Blueblack Chips and Growth Stocks”， 作者是 Sebastian Chong.

这本书以新加坡股票为例子,所含括的股票有:
1. Chartered Semiconductor Manufacturing
2. Singtel
3. ST Engg
4. SPH
5. OCBC
6. SGX
7. Jardine C&C
8. UOL
9. Axis System
10. Sincere Watch
11. CSE Global
12. Sinomem

在书中,作者以本身的方法分析股票, 让读者可以从作者分析股票的方法中,学习一些窍门.如对这书有兴趣, 可游览以下网址: http://www.shareowl.com/index.php

现在我想在这里记下一些我从书中得到的东西:

- You can buy Japan share easily from Singapore offices of Nomura or Daiwa. You can get good information from the Tokyo Stock Exchange's free website and Nikkei Interactive website for around S$200 a year.

- "In god we trust, in men, we audit", "No credit card please. In god we trust. For men, cash only".

- EVA:
根据investopedia: http://www.investopedia.com/terms/e/eva.asp
Economic Value Added - EVA

	A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as "economic profit".) The formula for calculating EVA is as follows: = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)
	This measure was devised by Stern Stewart & Co. Economic value added attempts to capture the true economic profit of a company.

注:这是一本大约于2004年发行的书.

我会继续努力的

太高兴了，我的部落格竟然吸引到来自美国的读者。本来看到只有一个访客心想或许只是巧合吧，现在有两个访客了，如果是访客旧地重游, 那便证明我的部落格的确不错，。访客请对于我的部落格给点意见吧，我已经将我的部落格转去任何人都可给意见了。我会继续努力，为大家带来更多好文章，希望大家会喜欢，并给于各方面不同的“支持”。哈哈，好像有点“怪兰”。

另外，相信大家也看见我的部落格的主题，从原本的“投资,创业,工作路”， 换成了“投资, 创业, 工作，休闲路”，更改主题的原因主要如下：

1。正所谓休息是为了走更长远的路，当我正忙着为生活打拼，走这艰难的“投资,创业,工作路”，有时，我也应该放慢脚步，回头看看自己，有没误入歧途，迷失自己，方为上策。

2。俗语说，读万卷书不如走千里路，现在虽然是网络时代，可是有些机会还是要自己出门去找，去观察，去发掘而来的。

3。让我有更多的题材带给大家，让大家阅读有兴趣的题材。

另外，我也在我的部落格加上了广告栏(第一个广告：advertlets，希望有朝一日我可以收到它的支票吧), 留言板以及让大家可以直接从主题游览我的部落格，够贴心吧，希望大家会喜欢。

整个部落格的基本结构大致已经完成，现在要做的是写更多有意义
的文章，当文章达到一定的数量，我便会申请google Adsense，到时希望默默的耕耘能够得到收获。

后记:他妈的, 要让blogspot承献出我理想的文章版面设计还真难.