INVESTORS’ relative unfamiliarity with exchange-traded funds (ETFs) remain the biggest hurdle to growth of the sector in Malaysia.
Despite the benefits and opportunities the strategies offer, many investors still have misconceptions about the product’s trading volume and liquidity as well as risks and return, causing them to stay away from this alternative investment.
However, with a bit more research, investors will find that ETFs actually offer a relatively liquid, less risky and inexpensive way to invest. ETFs also provide investors easy access to a wide range of underlying assets, including alternative asset classes such as commodities and futures.
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