Gold ETF (0828EA): A Smart Way to Invest in Gold on Bursa Malaysia

A Gold ETF (Exchange-Traded Fund) is an investment instrument that tracks the global gold price and is traded on the stock exchange, allowing investors to own the value of gold digitally without having to store physical bullion manually.

The first Gold ETF in Malaysia was launched on 6 December 2017. It is known as the TradePlus Shariah Gold Tracker (now managed by AHAM Asset Management, formerly Affin Hwang Asset Management).

Its primary purpose was to give investors in Malaysia the opportunity to own gold without the need to store physical gold in the traditional manner, which is often exposed to the risk of theft and high price spreads.

The First Shariah-Compliant Commodity ETF

What is unique about the origins of the Gold ETF on Bursa Malaysia (0828EA) is that it is the first Shariah-compliant commodity ETF in Malaysia.

Prior to its launch, the fund management team worked closely with Shariah advisers to ensure the contract structure met the requirements of Itmam al-Qabd (valid possession/delivery of gold). This opened the door for Muslim investors to invest in gold through the stock market in a permissible manner.

"Physical Backed" Structure

Since its inception, the Gold ETF in Malaysia has used a "Physical Backed" structure. This means:

• Every unit of the ETF issued represents a portion of pure physical gold (99.99% purity).

• The physical gold is stored in regulated vaults (mostly in Singapore/London in accordance with LBMA standards).

• This distinguishes it from "Paper Gold" or certain bank gold accounts that may not have 1:1 physical backing.

Why Was It Created?

Bursa Malaysia introduced this instrument as part of efforts to modernise the Malaysian capital market. Among the key drivers:

• Increasing accessibility: So that small investors can buy gold for as low as 100 units (1 lot) at the current market price.

• Price transparency: The ETF price moves directly in line with the global gold price (LBMA Gold Price AM), compared to local gold shop prices which may vary.

• Cost efficiency: Eliminating the need for storage insurance and the transportation costs of physical gold for large investors.

What Is TradePlus Shariah Gold Tracker (0828EA)?

This is the first Shariah-compliant gold ETF (Exchange Traded Fund) in Malaysia.

• Symbol: GOLDETF

• Code: 0828EA

• Backing: Pure physical gold (LBMA Gold Price). Every unit you purchase is backed by physical gold stored securely in a vault.

Why Choose Gold ETF Over Physical Gold?

As a smart investor, you need to consider the costs:

• Low Spread: Physical gold typically has a spread of between 5% and 15%. Gold ETF, on the other hand, has a very low spread (usually <1%), so you reach "break even" much faster.

• No Storage Costs: No need to rent a safe deposit box or worry about theft at home.

• High Liquidity: You can sell at any time during market hours and the funds will be credited to your broker trust account.

How to Start Investing (Step-by-Step)

1. Open a CDS Account: You will need a trading account (e.g. Mplus). If you do not yet have a CDS account, please register at Open a CDS Account with Mplus

2. Search for Code 0828EA: Search for "GOLDETF" or "0828EA" on your trading platform. You may also refer to How to Buy Shares on Bursa Malaysia (Mplus Global App)

3. Analyse the Price: Check the global gold price chart (LBMA) as this ETF's price moves in tandem with it.

4. Click Buy: Enter the quantity (minimum 100 units / 1 lot) and Match.

Conclusion

Gold ETF is the most efficient way to gain "exposure" to the gold price in your investment portfolio. It is suitable for those who want to swing trade the gold price or build long-term savings with minimal costs.

FAQ - Gold ETF Malaysia