Futures-based ETFs, such as Leveraged and Inverse (L&I) ETFs, will pave the way for a more cost-effective and transparent channel for investors to access the traditionally sophisticated futures market. Leveraged ETFs use futures contracts to provide a multiple of the underlying index’s daily return (positive or negative) while Inverse ETFs allow investors to gain from downward market.
Due to the complexity of the L&I ETFs, prospective retail investors must meet certain pre-qualification criteria before they can invest in these products. First time retail investors must undergo an e-learning module developed by Bursa Malaysia as well as a performance simulator provided by management companies of L&I ETFs before they can invest in L&I ETFs.
For more information on the revised ETF Guidelines, which comes into effect on 2 January 2019, please visit https://www.sc.com.my/regulation/guidelines/collective-investment-scheme
SECURITIES COMMISSION MALAYSIA