Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are open ended investment funds that are traded directly on the stock exchange. The objective of an ETF is to track the performance of an underlying index or even to replicate the performance of a composition of different stocks.

key features

Diversification

As ETFs mimic the composition of a stock index, you gain exposure to a variety of securities without having to invest time and money into individual stocks.

Affordability

ETFs are traded directly on the exchange and passively managed, hence there is a zero sales charge and management fees are lower compared to actively managed funds like Unit Trusts.

Liquidity

The purchase and sale of ETFs between buyers and sellers is ongoing throughout a working day on the stock exchange, making it easy for you to liquidate your investments.

Reduced Volatility

Due to their broad equities exposure, ETFs are more resilient and can provide a buffer against extreme fluctuation or erosion of investment value, in the face of market volatility.

Benefits

Low Cost Diversification

Buying an ETF such as STI ETF (State Street) gives you instant exposure to 30 companies which constitute the index, without buying into each of the single stocks and incurring high brokerage fees.

Access Hard-to-Reach Sectors

With ETFs, you can now readily access otherwise hard to reach assets and sectors, such as gold and oil.

Page Transparency

Enjoy intra-day price transparency on their listed exchanges.

RISKS OF ETFs

ETFs are subject to the following types of risks:

MARKET RISK
Investors are exposed to the price volatility of the underlying assets which the ETF tracks. Generally, where the price level of the underlying declines, the value of ETF declines as well.
FOREIGN EXCHANGE RISK
If the traded currency of an ETF is different from the functional currency of the investor, the investor will be exposed to fluctuations in foreign exchange rates which may affect the returns on the ETF.

How to Start Trading
Eligibility Criteria
Required Documents
Fees & Charges

How to Start Trading

How to Start Trading
Step 1
If you do not have an existing saving or current account with Baiduri Bank or Baiduri Finance, you will need to open an account for the purpose of trading.
Step 2
Complete our online application form to open a securities trading account with Baiduri Capital.
Step 3
Once you have submitted the form, please visit Baiduri Capital during business hours. You will need to bring your identity card (or passport for foreigners) for verification.

Our dedicated dealers will help you learn how to navigate our trading platform and make the most of available resources.

If you have any queries, please contact 225 8593/8594.
Eligibility Criteria
ELIGIBILITY CRITERIA
21 years old and above
Brunei citizen or permanent resident
Required Documents
REQUIRED DOCUMENTS
FOR BRUNEI CITIZENS OR PERMANENT RESIDENTS

Valid Identity Card, Royal Brunei Armed Forces Identity Card, Diplomatic pass; or
Valid Passport with latest Proof of Residential Address¹
FOR FOREIGNERS RESIDING IN BRUNEI (GREEN IDENTITY CARD HOLDERS)

Option 1
Identity card or temporary receipt, within its validity, issued by the Brunei Immigration Department
Passport with valid employment pass (with at least one month’s validity)

Option 2
Passport with valid employment pass
Letter of employment issued by the employer
Satisfactory evidence of Residential Address¹

FOR FOREIGNERS NOT RESIDING IN BRUNEI

Passport
Proof of residential address in home country with the following:
Utility bills not over three months old such as electricity, telephone or water bill
Bank statement, credit card statement or a reference letter from his/her account from a recognised bank

¹Proof of Residential Address can be in the form of:

Utility Bill not over three months old e.g. electricity, telephone or water bill
Bank statement, credit card statement or a letter of reference from his/her account from a recognised bank
Valid Driving Licence
Employment confirmation letter from employer
Fees & Charges

Fees & Charges
view our general tariffs

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