A Waqf (وقف) is an Islamic charitable endowment — a form of giving where assets are dedicated in perpetuity for a specified charitable purpose. It is one of Islam's most powerful social finance instruments, historically used to fund mosques, schools, hospitals, and community infrastructure across the Muslim world.
The EQ8 FTSE Malaysia Enhanced Dividend Waqf ETF (0839EA) is the world's first ETF that structurally embeds Waqf into the investment product itself. When the fund distributes income to unitholders, it automatically splits the distribution 50/50:
The Waqf portion is managed by Yayasan Waqaf Malaysia (YWM), a government-backed institution, and deployed to projects in healthcare, education, economic empowerment, and environmental initiatives.
Once income enters the Waqf pool, it is permanently dedicated to charitable causes — you cannot reclaim it. However, you retain full ownership of your ETF units, and the capital appreciation of your units accrues entirely to you. You only "give away" half of the income distributions, not your invested capital.
EQ8WAQF was launched on 10 December 2024 and endorsed by YAB Dato' Seri Anwar Ibrahim, Malaysia's 10th Prime Minister, as part of a national push to develop Islamic social finance instruments. This gives the fund strong government and regulatory tailwinds.
Beyond the Waqf feature, 0839EA tracks a sophisticated dividend-enhancement index: the FTSE Bursa Malaysia EMAS Shariah Factor Enhanced Target Dividend Index, developed by FTSE Russell. This is not a simple dividend index — it uses a momentum factor overlay to select stocks that combine high dividend yield with rising price momentum.
The idea: dividend stocks provide income stability, while the momentum screen selects those whose prices are rising — filtering out dividend traps (high yield but falling prices). This combination aims to generate income that outperforms a pure dividend yield strategy, while Shariah compliance ensures all holdings meet Islamic finance standards.
| Fund / Index | YTD | 1 Month | 3 Month | 6 Month | 1 Year | Since Inception** |
|---|---|---|---|---|---|---|
| EQ8WAQF (NAV) | +2.95% | +2.95% | -0.28% | +2.66% | -0.15% | -4.93% |
| FTSE BM EMAS Shariah Factor Enhanced Dividend Index | +3.28% | +3.28% | +1.26% | +3.76% | +0.16% | -8.00% |
**Since 5 December 2024. Source: Novagni Analytics Advisory Sdn Bhd. Past performance is not indicative of future results.
With only ~14 months of price history, the since-inception return of -4.93% is not a meaningful signal. The fund launched in December 2024, went through normal early-trading volatility, and has shown positive recovery in early 2026 (YTD +2.95%). The benchmark itself is down -8.00% since inception — the fund has actually outperformed its index by +3.07% in this early period. A fair performance assessment requires at least 3–5 years of data.
The FTSE index uses a momentum factor overlay — stocks rising in price and paying high dividends get higher weighting. Time Dotcom (telecoms infrastructure) and Bursa Malaysia (stock exchange operator) were both strong performers in 2024 and offer above-average dividend yields. Note that Bursa Malaysia itself being a top holding means you are partly investing in the infrastructure that runs the exchange you're buying this ETF on.
Holdings and weightings as at 31 January 2026 (official fund factsheet). 34 constituents total. Rebalanced periodically per FTSE index methodology.
Financial Services at 18.99% is the largest sector — but importantly, these are Islamic financial institutions like Bank Islam (BIMB) and MBSB, not conventional banks. Conventional banks like Maybank and CIMB are excluded by Shariah screening. The Telco & Media position (15.64%, led by Time Dotcom) reflects the momentum factor rewarding the sector's 2024 outperformance.
| Year | Total Distribution (sen) | To Unitholder (50%) | To Waqf (50%) |
|---|---|---|---|
| 2025 | 1.70 sen | 0.85 sen | 0.85 sen |
Fund launched December 2024. 2025 is the first full distribution year. No historical distribution data available prior to launch.
When comparing 0839EA's yield to other ETFs, remember that only 50% of the distribution reaches your account. A 1.70 sen total distribution at a RM 0.95 NAV gives a gross yield of ~1.79% — but your effective cash yield is only ~0.89%. Factor this in when comparing to 0824EA or 0821EA, where 100% of distributions go to you. You're "paying" the other 50% as a Waqf contribution.
| Fee Type | Rate | Note |
|---|---|---|
| Management Fee | 0.600% p.a. | Annual management fee |
| Trustee Fee | Up to 0.080% p.a. | Deutsche Trustees Malaysia Berhad |
| Index License Fee | 0.060% p.a. | Paid to FTSE International Limited |
| Total Annual Fees (TER) | 0.74% p.a. | Silently deducted from NAV daily |
At 0.74% p.a., this is higher than 0821EA (0.49%) and 0824EA (0.505%). The premium reflects the more complex FTSE momentum-factor index methodology and the Waqf administrative structure. Whether the enhanced dividend strategy justifies the higher fee is something to evaluate as the fund builds a longer track record.
| Feature | 0839EA WAQF | 0824EA MY Div | 0821EA Titans 25 |
|---|---|---|---|
| Strategy | Dividend + Momentum | High dividend yield | Top 25 by mkt cap |
| Distribution | 50% to you | 100% to you | 100% to you |
| TER | 0.74% | 0.505% | 0.49% |
| Index Provider | FTSE Russell | MSCI Inc. | S&P Dow Jones |
| Holdings | 34 | 21 | 25 |
| Fund Size | RM 1.43M | RM 23.86M | RM 136.64M |
| Track record | ~14 months | 12 years | 18 years |
| Unique feature | 🕌 Waqf built-in | — | — |
| Best for | Dual financial + social return | Max cash income | Blue chip + income |