1. How is the pricing of an ETF done?
Net Asset Value (NAV) and Indicative Optimum Portfolio Value (IOPV) of the ETF will approximate the trading value of the underlying securities held in the ETF plus any undistributed income.
However, the trading price of units in the ETF may differ from the NAV / IOPV per unit of the ETF.
Although supply and demand determine the market price of an ETF, arbitrage will help to keep the traded price of an ETF in line with its underlying value.
2. How can I buy or sell an ETF?
Investors can buy or sell an ETF through any broker, exactly the same way as stocks are traded. The ETF is listed on the stock exchange of the respective countries and can be traded intraday, making it easy for investors to buy or sell. Investors can commence trading the units of the ETF from the listing date.
Investors may also choose to apply for creation/redemption in a creation/redemption unit block (“Creation/Redemption Unit Block”) or whole multiples thereof, through the Participating Dealers. The Creation/Redemption Unit Block size varies for each ETF and the details for our CIMB ETFs can be obtained in “How to Invest” section of the respective ETF.
Investors can also buy or sell an ETF through the CIMB online share trading service. To open an account with i*Trade@CIMB Malaysia:
- You will require two accounts:
- A Central Depository System (CDS) account, and
- A trading account maintained with a broker
- You have to be a registered user and to open an i*Trade@CIMB online trading account with CIMB Investment Bank Berhad. Once your trading account has been approved by CIMB Investment Bank Berhad, an email notification will be sent informing you that your online trading account is activated. You can then start trading online.
3. Do CIMB ETFs pay dividends?
We intend to have yearly distribution of income to unit holders on an ongoing basis. The payment of distributions is at the discretion of the Fund Manager and will vary from period to period depending on market conditions and the performance of the Fund.
4. Can I purchase and redeem units of an ETF through the Manager?
Retail investors cannot purchase or redeem units of an ETF like they do for normal mutual/unit trust funds.
Retail investors who intend to purchase or redeem units of an ETF can simply place orders through their brokerage accounts for execution.
5. Where can I get up-to-date price information on an ETF?
Investors can obtain information on trading prices from their brokers or stock quotation systems. The closing prices are also published in major newspapers on the following business day.
The following will be provided in the CIMB ETF website on a delayed basis:
- the mid-day estimated Indicative Optimal Portfolio Value (IOPV) per unit, and
- the end-of-day Net Asset Value (NAV) per unit
Please note that the trading price of the units of the ETF may differ from the actual IOPV or NAV per unit of the Fund.