Eq8 Launches World’s First Waqf-Featured ETF on Bursa Malaysia

Samuel Chua

10th December 2024 - 2 min read

Eq8 Capital (Eq8), a member of Kenanga Investors Group, has launched the world’s first Waqf-featured exchange-traded fund (ETF), the Eq8 FTSE Malaysia Enhanced Dividend Waqf ETF, on the Main Market of Bursa Malaysia.

The launch, in collaboration with Yayasan Waqaf Malaysia (YWM), aims to distribute income annually, with half of the income distribution allocated as Waqf assets and the remaining half payable to unit holders.

The Waqf ETF, classified as an Islamic equity ETF, is an index-tracking fund benchmarked against the FTSE Bursa Malaysia EMAS Shariah Factor Enhanced Target Dividend Index. This ETF aims to provide competitive dividend yields while managing risks such as turnover, yield traps, and market concentration. Key constituents of the Waqf ETF include Inari Amertron, Time Dotcom, Bursa Malaysia, Gamuda, and Kossan Rubber.

Datuk Wira Ismitz Matthew De Alwis, Executive Director and CEO of Kenanga Investors, highlighted the fund’s alignment with Malaysia’s socio-economic goals and the UN Sustainable Development Goals. “We perceive the launch to be in alignment with the government’s call for increased collaborations between religious bodies, the public and the private sectors in order to maximise potential for Waqf assets to fund projects such as education, healthcare, economic empowerment and environment,” he said at the launch.

YWM CEO Dr. Ridzwan Bakar described the ETF’s role as a tool for inclusivity, enabling investors of all faiths to contribute towards societal improvement. “With the formation of innovative products like this, investors of all faiths may now take part in contributing towards the betterment of society,” he said.

The CEO of Bursa Malaysia, Datuk Muhamad Umar Swift, welcomed the launch as timely, given the rising interest in ethical investing. “The Waqf ETF is expected to be well-received by investors, particularly those seeking financial returns while making a positive impact on society,” he said.

With an approved fund size of one billion units, the Waqf ETF is suitable for medium to long-term investors seeking exposure to high-yield, dividend-paying Shariah-compliant equities. It is particularly attractive to those who wish to integrate Waqf contributions into their investment strategy, as the fund directly supports economic empowerment, education, healthcare, and environmental causes through its income distribution policy.

Investors looking to trade the Waqf ETF can find it by searching for “EQ8WAQF” or the stock code 0839EA in the Kuala Lumpur Stock Exchange on their preferred stockbroking platforms.

Samuel Chua

Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.

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