The Principal FTSE ASEAN 40 Malaysia ETF (0822EA) is a Bursa Malaysia-listed exchange-traded fund that gives Malaysian investors access to the 40 largest companies across five ASEAN economies — Singapore, Malaysia, Thailand, Indonesia, and the Philippines.
The ETF tracks the FTSE/ASEAN 40 Index, a real-time, USD-denominated benchmark developed by FTSE Russell that selects the largest companies by full market capitalisation from these five stock exchanges. Companies must meet FTSE Global Equity Index Series eligibility requirements including minimum liquidity screens.
As ASEAN's economic weight grows — driven by a young, urbanising population, rising middle class, and strategic positioning in global supply chain shifts away from China — this ETF offers a single, low-cost instrument to participate in the region's long-term growth story.
Collectively, ASEAN's five index markets represent a GDP of over USD 4 trillion — larger than India, Germany, or Japan. The region is projected to be the 4th largest economy globally by 2030. With ~670 million people, a median age under 30, and rapidly expanding digital and manufacturing sectors, ASEAN presents a structural growth story spanning decades.
This is not a direct-holding ETF. It is a feeder fund — meaning your money is invested into a separate Singapore-listed fund (the "master fund"), which in turn holds the actual ASEAN stocks. Understanding this two-layer structure matters.
There are two layers of fees: the Malaysia ETF's own management fee, plus the Singapore master fund's ongoing expenses — both are deducted from NAV. Additionally, distributions from the 40 underlying companies pass through two fund structures before reaching you in MYR. The NAV of 0822EA also incorporates SGD/MYR currency movements (since QS0.SI is priced in SGD). This means your MYR returns are influenced not just by ASEAN stock prices, but also by the SGD/MYR exchange rate — an additional variable to be aware of.
Holdings are approximate weightings based on the FTSE/ASEAN 40 Index composition. The Bursa-listed fund (0822EA) is a feeder into the SGX master fund (QS0.SI) which holds these stocks directly. Actual weightings reviewed annually in March by FTSE Russell. Verify current holdings at the fund's official fact sheet.
The FTSE/ASEAN 40 Index is market-cap weighted, and Singapore's three major banks alone (DBS, OCBC, UOB) make up roughly 32% of the index. If you are primarily seeking exposure to Malaysia, Indonesia, Thailand, or the Philippines, this fund may not provide the balance you expect. Consider pairing it with country-specific funds, or look at EQ8 MSCI SEA Islamic Dividend (0825EA) for a more balanced ASEAN allocation with Shariah screening.
The 2024 distribution of 6.79 sen against a lower unit NAV produced a high annualised yield. ASEAN's large-cap financials — particularly Singapore banks DBS, OCBC, UOB — paid elevated dividends in 2024 following strong earnings driven by high interest rates. The 2025 distribution (expected mid-2025) may moderate as Singapore banks entered a declining rate environment. Always treat historical yield figures as a guide, not a guarantee — the fund does not have a fixed payout policy.
Source: Principal Malaysia official website. Annualised yield calculated as distribution divided by NAV at time of payment. Past distributions are not a guarantee of future distributions.
| Fee | Rate | Note |
|---|---|---|
| Malaysia ETF Management Fee | 0.40% p.a. | Charged on 0822EA (Bursa-listed feeder) |
| Trustee Fee (MY) | 0.05% p.a. | Deducted from Malaysia feeder fund NAV |
| Singapore Master Fund Expenses | ~0.20% p.a. | Embedded in SGX master fund (QS0.SI) NAV |
| Effective TER (approx.) | ~0.65% p.a. | Combined, silently deducted from NAV |
Because 0822EA invests into a Singapore-listed master fund rather than holding stocks directly, you effectively bear two layers of costs. The Malaysia-level management fee (0.40%) and the Singapore fund's own ongoing expenses are both deducted from your NAV. The effective TER of ~0.65% is still competitive for a regional ETF, but is higher than a single-layer direct ETF would be.
- Want regional ASEAN diversification beyond Malaysia
- Comfortable with Singapore banks dominating the portfolio
- Seeking annual cash income (~6–8% historically)
- Want a liquid, transparent, exchange-traded vehicle
- Long-term horizon (5+ years) on ASEAN growth
- Comfortable with non-Shariah holdings (conventional banks)
- You need Shariah compliance (contains conventional banks)
- You want equal or balanced ASEAN country exposure
- You are primarily seeking Malaysian domestic exposure
- You want capital growth without the Singapore bank concentration
- You want monthly or quarterly income
Malaysian investors have two ASEAN ETF options on Bursa. 0822EA (Principal FTSE ASEAN 40) is broader market-cap weighted, Singapore-heavy, and conventional (non-Shariah). 0825EA (EQ8 MSCI SEA Islamic Dividend) is Shariah-screened, has a more balanced country allocation, and focuses on dividend yield across 5 ASEAN markets including Shariah-compliant stocks only. If Shariah compliance matters to you, 0825EA is the obvious choice. If you want conventional large-cap ASEAN blue chips with history and Singapore's banking giants, 0822EA is the one.
| Feature | 0822EA ASEAN 40 | 0825EA SEA Div | 0821EA MY Titans | 0824EA MY Div |
|---|---|---|---|---|
| Geography | 5 ASEAN countries | 5 ASEAN countries | Malaysia only | Malaysia only |
| Shariah | ❌ No | ✅ Yes | ✅ Yes | ✅ Yes |
| Holdings | 40 | 39 | 25 | 21 |
| TER | ~0.65% | 0.775% | 0.49% | 0.505% |
| 2024 yield (approx.) | ~8.4% | ~1.0% | ~1.4% | ~1.5% |
| Structure | Feeder (SGX) | Direct | Direct | Direct |
| Top country | Singapore ~55% | Malaysia ~27% | Malaysia 100% | Malaysia 100% |
| Best for | ASEAN income + bluechips | Halal ASEAN diversification | MY blue chips (halal) | MY dividend income (halal) |
Yield figures are approximate, based on recent distributions divided by prevailing NAV. Past yield is not indicative of future distributions.