By MARK RAO / TMR file pix

The MyETF Dow Jones US Titans 50 (MyETF-US50) aims to increase the depth of Malaysia’s exchange traded fund (ETF) market after debuting on Bursa Malaysia Securities Bhd yesterday.

As the first US dollar denominated security to be listed on the local bourse, the Shariah-compliant fund closed 0.5 cents higher from its initial issue price of US$1 (RM3.92) per unit, with a day trading volume of 139,600.

The fund is managed by i-VCAP Management Sdn Bhd, a wholly owned unit of ValueCap Sdn Bhd, closely corresponds to the performance of the Dow Jones Islamic Market US Titans 50 which tracks the 50 largest Shariah-compliant US companies based on market capitalisation.

Bursa Malaysia CEO Datuk Seri Tajuddin Atan said the ETF will help enhance the breadth and depth of Malaysia’s ETF market.

“This ETF will establish Bursa Malaysia as a multiasset and multi-currency exchange that is set to attract more issuers and investors into our capital market,” Tajuddin said in a press statement yesterday.

“We will continue to play our part to enhance the ecosystem to support ETF listings and intensify investor engagement to spur ETF trading activities even further.”

ValueCap MD and group CEO Sharifatu Laila Syed Ali said the listing of MyETF-US50 will promote the company’s role in Malaysia’s capital market.

“It is a testament to our group’s commitment to driving the Malaysian ETF industry to the next phase and enhancing the vibrancy of the domestic capital market, by providing more diverse and innovative product offerings,” she said in the same statement.

“Innovative products like this provide investors with alternative passive strategies to ride market volatility.”

It provides Malaysian investors access to Shariah compliant blue-chip stocks traded on the US market, with the ETF to closely correspond to the S&P 500 benchmark index which achieved a 19.4% return last year.