Performance of Islamic and conventional exchange traded funds in Malaysia Report as inadecuate




Performance of Islamic and conventional exchange traded funds in Malaysia - Download this document for free, or read online. Document in PDF available to download.

Abstract

ETFs have attracted many investors as one of the most innovativeproducts of financial engineering. By virtue of the nascent nature ofMyETF-DJIM Titan 25 and FBM 30ETF in Malaysia, comparativeperformance studies are essential during a financial crisis. MyETF isdifferent from FBM 30ETF in terms of investment scope and ShariÑahgovernance structure. While MyETF has achieved its objective intracking its index, FBM 30ETF has failed in this respect. Despiteits higher total risk, MyETF performed better than its index. Thesame applies in the case of FBM 30ETF. Although MyETF hasbigger net assets, economies of scale, and better diversification, theperformances of the two funds are lacklustre and similar, with FBM30ETF performing somewhat better. Notwithstanding their success tooutperform their respective benchmarks, both ETFs had comparablenegative performance, with decline in prices and NAV. The negativereturns have caused abnormality in their measurements.



Item Type: MPRA Paper -

Original Title: Performance of Islamic and conventional exchange traded funds in Malaysia-

Language: English-

Keywords: Islamic Capital market, Islamic ETF, MyETF, FBM 30ETF, Trading, Performance-

Subjects: G - Financial Economics > G1 - General Financial MarketsC - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C25 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions ; Probabilities-





Author: Diaw, Abdou

Source: https://mpra.ub.uni-muenchen.de/32601/







Related documents