Top Unit Trust Funds in Malaysia | Investment Series

lipkarlock Friday, August 01, 2025


1. Malaysia Unit Trust Funds Performance


If you would like to know the performance of top Unit Trust in Malaysia based on the past 5 years annualised returns, you can refer it at here: https://www.fsmone.com.my/tools/fund-selector

The list are:

1. Manulife Investment U.S. Equity Fund - MYR Hedged Class - 10.63%
2. RHB Smart Income Fund - 10.57%
3. AHAM World Series - Global Equity Fund - SGD - 10.40%
4. AHAM World Series - Global Equity Fund - MYR - 10.34%
5. Manulife Global Low Volatility Equity Fund - USD - 10.33%
6. AHAM World Series - Global Equity Fund - USD - 10.32%
7. Hong Leong Dana Makmur - 10.25%
8. Principal Global Technology Fund - MYR Hedged - 10.29%
9. Principal Global Titans Fund - MYR Class - 9.73%
10. Kenanga Growth Fund Series 2 - MYR Class - 9.54%
11. Kenanga Growth Fund Series 2 - USD Class - 9.46%
12. AHAM Tactical Fund - 9.45%




2. SPY & QQQ ETF Performance


For other alternatives besides unit trust funds in Malaysia, you can check out US ETF (Exchange Traded Fund) as well.

Note: SPY ETF gained 93.58% or 111% (dividend reinvested) for the past 5 years since Aug 2020 to July 2025.





Note: QQQ ETF gained 112.58% for the past 5 years since Aug 2020 to July 2025.






QQQ ETF performance did way better than SPY ETF:

Link: https://www.invesco.com/qqq-etf/en/home.html



2.1 Annualised return of SPY & QQQ ETF:


For the past 5 years, the SPDR S&P 500 ETF (SPY) has had an annualized return of 15.85%, while the Invesco QQQ Trust (QQQ) has had an annualized return of 17.12% according to PortfoliosLab.

Here's a more detailed breakdown:

SPY (S&P 500 ETF): 15.85% annualized return over the past 5 years.
QQQ (Nasdaq-100 ETF): 17.12% annualized return over the past 5 years.








Top 25 Holdings for SPY & QQQ ETF:








3. What is the difference between Unit Trust Funds (UT) and Exchange Traded Fund (ETF)




A Professional Analysis of Investing in Unit Trusts vs. Exchange Traded Funds (ETFs)

Both Unit Trusts and Exchange Traded Funds (ETFs) serve as powerful instruments for achieving portfolio diversification. While they share the fundamental goal of pooling capital to invest in a broad range of assets, their structural and operational differences lead to distinct advantages and disadvantages for investors. A comprehensive understanding of these points is crucial for making an informed investment decision.

Both Unit Trusts and Exchange Traded Funds (ETFs) are popular investment vehicles that allow investors to pool their money to buy a diversified portfolio of assets. However, they have key differences in their structure, management style, and how they are traded, which result in a distinct set of pros and cons for each.


3.1 Unit Trusts

A unit trust is a professionally managed fund where investors' money is pooled together to invest in a diversified portfolio of assets like stocks, bonds, and other securities. They are actively managed, with a fund manager making decisions on what to buy and sell with the goal of outperforming a benchmark.

Pros of Investing in Unit Trusts:

  • Professional Management: A key advantage is that a team of experienced fund managers conducts research and makes all the investment decisions on your behalf. This is a hands-off approach that can be very appealing to new or inexperienced investors.

  • Diversification: By pooling money, unit trusts can achieve a high level of diversification, spreading risk across many different assets and sectors, which would be difficult for an individual investor to do on their own.

  • Variety of Strategies: Unit trusts offer a wide range of investment options and strategies. You can find funds that specialize in specific regions, sectors (e.g., technology, healthcare), or asset classes, allowing you to tailor your portfolio to your specific goals.

  • Regular Updates and Insights: Fund managers often provide regular updates and market outlooks, giving investors valuable insights into market trends and how their portfolio is being managed.

Cons of Investing in Unit Trusts:

  • Higher Fees: Due to the active management, unit trusts typically have higher fees than ETFs. These can include management fees and other operating costs, which can eat into your returns over time.

  • Performance is Not Guaranteed: While a fund manager's goal is to outperform the market, there is no guarantee they will succeed. Poor performance can result in a loss of capital, and the higher fees will still apply.

  • Lower Liquidity: Unit trusts are generally priced and traded only at the end of the day, based on their Net Asset Value (NAV). This means you cannot buy or sell shares throughout the trading day as you can with stocks or ETFs.

  • Less Transparency: Unlike many ETFs, which disclose their holdings daily, the holdings of an actively managed unit trust may not be disclosed as frequently.


3.2 Exchange Traded Funds (ETFs)

An ETF is a type of fund that holds a collection of assets but is traded on a stock exchange, similar to an individual stock. Most ETFs are passively managed, meaning they aim to track a specific market index, such as the S&P 500 or the Nasdaq-100.

Pros of Investing in ETFs:

  • Low Costs: Because most ETFs are passively managed and simply track an index, they have significantly lower management fees and expense ratios compared to actively managed unit trusts.

  • High Liquidity and Flexibility: ETFs are traded on stock exchanges, so you can buy and sell them throughout the trading day. This offers a high degree of liquidity and flexibility, allowing you to react quickly to market changes.

  • Transparency: Most ETFs are highly transparent, with their underlying holdings disclosed on a daily basis. This allows investors to see exactly what they are invested in at all times.

  • Diversification: Like unit trusts, ETFs provide instant diversification by giving you exposure to a wide basket of securities in a single transaction.

  • Tax Efficiency: ETFs often have a tax advantage over traditional mutual funds due to their creation and redemption process, which can help minimize capital gains distributions.

Cons of Investing in ETFs:

  • No Active Management: While low fees are a pro, the passive nature of most ETFs means you are not paying a professional to try and beat the market. You will simply get the market's average return (minus fees).

  • Tracking Errors: The performance of an ETF may slightly deviate from the index it is designed to track. This "tracking error" can be caused by various factors, including fees and trading costs within the fund.

  • Trading Costs: While many online brokers now offer commission-free trading for ETFs, some still have a commission or a bid-ask spread that can add up, especially if you trade frequently.

  • Market Risk: Just like any other investment, ETFs are subject to market risk. The value of your investment will fluctuate with the performance of the underlying assets.


4. Conclusion

The choice between a Unit Trust and an ETF ultimately depends on an investor's personal objectives, risk tolerance, and investment style.

Unit Trusts are well-suited for investors who prioritize professional oversight and believe in the potential of active management to generate alpha, and are willing to pay for that expertise.

ETFs, conversely, are an excellent choice for cost-conscious investors who prefer a diversified, transparent, and liquid investment vehicle that aims for market-rate returns.

A sophisticated investment strategy may also involve a combination of both types of funds to achieve a balanced and well-diversified portfolio.






Happy Investing! 😉
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