iShares MSCI Malaysia ETF offers investors exposure to some of the largest firms trading on Malaysia's stock market. Almost 60% of its holdings are established banks and utilities, with zero technology firms, lessening the possibility of significant outperformance. The ETF is hardly cheap based on a price-to-earnings ratio of 15x, particularly by emerging market standards.
Investing in Malaysia via the iShares MSCI Malaysia ETF (EWM) offers potential but carries significant risks due to its 45% exposure to the financial sector. Malaysia's economy is stable with low credit default swap premiums, a non-inverted yield curve, 4.4% GDP growth, low unemployment, and controlled inflation. Political stability and favorable policies, including investments in green energy and fiscal responsibility, support a positive outlook for EWM.
ASEAN economies are expected to maintain steady growth despite global macro headwinds, with Malaysia poised to benefit from higher commodity prices and geopolitical shifts. Historical trends show ASEAN countries gained from a China-centric trade war, with companies seeking lower-cost manufacturing sites shielded from tariffs. Malaysia's economic outlook is positive, benefiting from higher commodity prices and potential geopolitical advantages if tariffs continue to target China.
![]() EWM 11 months ago Paid | Semi Annual | $0.36 Per Share |
![]() EWM 20 Dec 2023 Paid | Semi Annual | $0.37 Per Share |
![]() EWM 7 Jun 2023 Paid | Semi Annual | $0.37 Per Share |
![]() EWM 13 Dec 2022 Paid | Semi Annual | $0.22 Per Share |
![]() EWM 9 Jun 2022 Paid | Semi Annual | $0.47 Per Share |
![]() EWM 11 months ago Paid | Semi Annual | $0.36 Per Share |
![]() EWM 20 Dec 2023 Paid | Semi Annual | $0.37 Per Share |
![]() EWM 7 Jun 2023 Paid | Semi Annual | $0.37 Per Share |
![]() EWM 13 Dec 2022 Paid | Semi Annual | $0.22 Per Share |
![]() EWM 9 Jun 2022 Paid | Semi Annual | $0.47 Per Share |
ARCA Exchange | US Country |
The company in question is an investment fund that primarily focuses on mirroring the performance of the large- and mid-capitalization segments of the Malaysian market. By allocating at least 80% of its assets into the component securities of its underlying index or into investments with nearly identical economic characteristics, the fund seeks to provide its investors exposure to a specific segment of Malaysia's economy. Given that its strategy revolves around tracking an underlying index tailored to the Malaysian market's larger and mid-sized companies, this fund operates with a non-diversified investment approach. This strategy is reflective of the fund's goal to replicate the index's performance as closely as possible, aiming to offer investors the potential for returns aligned with those of the targeted market segments.
The fund invests a significant portion of its assets, at least 80%, directly into the component securities that constitute its underlying index. This direct investment approach is designed to closely mirror the performance of the large- and mid-capitalization segments of the Malaysian market covered by the index. By investing directly in these component securities, the fund aims to achieve a performance correlation with its underlying index, providing investors with a targeted investment exposure to the Malaysian market.
In addition to investing directly in the component securities of its underlying index, the fund also allocates assets into investments that have economic characteristics substantially identical to those of the component securities. This method includes investing in financial instruments or derivative products that mimic the economic behavior of the securities within the underlying index. Such investments are selected to enhance the fund's ability to replicate the performance of its index, thereby offering an investment product that closely aligns with the dynamics of the large- and mid-capitalization segments of the Malaysian market.