They say that the only constant thing in this world is change, and uncertainty.
We don’t know what lies ahead and we can never be too sure.
Many invest their money in banks and trust funds, but it is such a tedious process that you lose the motivation along the way.
Some open-minded individuals welcome Exchange Traded Fund (ETF), where they enjoy ease, flexibility, and liquidity making their investments grow as compared to other forms of investments.
The ETF Singapore offers are quite varied with an open-ended investment that keeps track of the performances of commodities, indexes assets, and bonds. These are all accessible through the Singapore Stock Exchange as these are listed and traded in this regulated market.
In contrast to other investments, the ETF is very similar to the traditional stock exchange trade. But, ETF is given more diversity across various indexes.
Investors are also subject to less management expenses because of its passive management mechanism.
Here are the 10 SGX listed ETFs you might not know exist.
An ETF investment that gives you a diversified reach, The CIMB FTSE ASEAN 40 allows you to take part in over 40 blue chip companies from five (5) major countries across the Southeast Asia.
Malaysia, Philippines, Singapore, Thailand, and Indonesia have varied economies with distinct strengths that make it an interesting and promising investment. It is a “one-stop shop” for access and exposure to these economic powers with less equity risk asset risk.
This ETF is especially suited to those who want to expand and diversify their ETF.
It has a strong performance since its inception and continues to show growth. Hence, although ETF returns are not always guaranteed because of the nature of investments (i.e., in asset fluctuations), the CIMB FTSE ASEAN 40 has steady returns and distributions.
It gives the investors, like yourself, peace of mind.
Another ETF listed on the Singapore stock exchange you might not know is the iShares MSCI India Index. Unlike the CIMB FTSE ASEAN 40, this ETF is more focused and concentrated in India. It gives you an exposure to the mid-sized to large companies in this country.
It may seem that investing in this ETF is considered risky or high volatile, but India is an economic powerhouse with a fast growing financial backdrop that makes the investment attractive.
The ETF is a good investment for those seeking more diversity other than big economies and US and Europe countries.
The iShares MSCI India Index ETF also has a good mixture of industries and holdings as computer, energy, utilities, financials, and telecommunication among many others.
You will have access to sectors that the most basic and steady growing sectors suggesting return on your investments.
The pro exchange players may have already heard if not invested in the ABF Singapore Bond Index Fund. It is, however, worth mentioning most importantly for the newcomers or neophyte investors.
This ETF is one of the biggest and earliest ETF on Singapore stock exchange. Throughout the years it has been growing strong and steady, which makes it among the most successful ones.
As of August 2017, the ABF has an Assets Under Management (AUM) of S$869 million. This figure demonstrates the strength of the ETF.
At first glance, like many of us, it is discouraging to purchase from this ETF especially for the new players as the figures look very intimidating. But, because it is an established ETF, it is low cost and less risky, which is shown by its recorded success each year since it was created.
What does it take to be the next Mark Zuckerberg or Bill Gates? Isn’t among our common dreams? You might need more than just dreaming and hard work for that. But, an ETF with SPDR S&P 500 might get you closer to the real thing.
This ETF, read as “spiders,” gives you entry to the American Stock Exchange (AMEX) through purchasing shares from the SGX.
As of the late part of 2017, the SPDR S&P 500 consist of 500 chosen stocks across different sectors with information and technology the leading industry, followed by financials, health care, energy and real estate among many.
The good thing about this ETF is that it will not require you to have a US trading account. You can simply purchase from the SGX.
See, the dream is easier to achieve than what you might believe.
Fifth on our list is the MSCI Korea UCITS Index. Some investors see this ETF with relatively high risk considering that it is operating in an emerging market. It, however, is still a good investment taking into account this ETF development.
The MSCI Korea UCITS Index can also help in widening your portfolio if you are into international markets.
This ETF also shows good potential for newbies in this industry since it can expose you to about 85% equity from large to medium size caps in Korea.
One enticing benefit of the ETF is that you can access constituents like Samsung Electronics, LG, and Hyundai, which are internationally established brands.
Now, you can enter into the Korean market with ease and exploit the growth and investment opportunities. While other buyers are concentrated in the other large and established economies, you can dip your toes in this emerging one.
This ETF is another SPDR ETF, which also has exposure and access to similar industries as the previous ETFs. It includes those of Telecommunications, Oil and Gas, Financials, and Consumer Services to name a few.
This SPDR Strait Times Index is apart from the others because it is localized. That is, you invest in organizations that you know or grew up to know.
If you are new to ETF purchasing, it is a good way to start with and ETF that you are familiar with. It keeps you from being overwhelmed, particularly if you don’t have any background with this.
You can keep track with it and will have a somewhat tangible way to check how your investment is doing since it consists of companies known to you.
The other face of the coin is that some of the organizations composing this ETF are also doing business outside the country. Thereby, it brings your investment to new heights.
It wasn’t so long ago that China opened its doors to the rest of the world. When it did, things were surging in and out of the country causing major development in its overall economic performance.
Now, they are one of the biggest in the world regarding socio-economic and political transformations.
With this, you can now invest in and a sweet bit in the large and growing Chinese companies. This ETF is also a way for you to gain entry in the Hong Kong Stock Exchange.
The FTSE China 50 UCITS ETF may be limited to a replica of the FTSE China 50 H Shares index, but you can purchase from it constituents including big Chinese companies like Bank of China, Sinopec, and PetroChina as a few samples.
These companies have shares that are immediately available to you for purchase.
At number eight on our list of ten ETF, you don’t know about is another homegrown investment for you. The Nikko AM Singapore STI aims to replicate the Strait Times Index that tracks the top ranking companies in Singapore.
This ETF is another of its kind, where the newbies can consider when starting their first investment since it Singapore-focused. It helps you purchase shares from blue chip companies in Singapore that are familiar to you giving a sense of security.
The “sense” of security in investment is, however, not false because this ETF has shown improving performance in 2017. Its holdings constitute large companies in telecommunications, real estate, financials, industrials and consumer staples.
All these you can get a comparatively lower cost in the investment, with minimal risk involved and a fast entry into the Singapore Stock Exchange.
Now, it might not have crossed your mind, but you can get your hands on gold through your ETF investment.
Yes, gold. The SPDR Gold Shares ETF is a listed ETF in the Singapore Stock Exchange, which is one of the highest traded. But, unlike the others, this will allow you to enter the gold market.
You don’t have to manually buy and sell the physical gold. In participating the SGX through this ETF, you get to play with Trust and gold bullion assets. Such an investment may seem unsafe. However, this ETF can also and still translate into cash.
The SPDR Gold Shares is appropriate for investors who have been in the stock exchange game for some time in order to widen and differentiate investments. New players, however, are not prevented if they are interested in gold bullions.
Finally, the last ETF that you don’t know about is an investment in debt securities. If you are new in the game, the word debt have a negative connotation creating fear.
He iShare J.P. Morgan USD is not simply waiting (and hoping) for debt to be paid, it is an investment in the securities of the debt.
We are not talking here is a simple loan and its securities. The players in this ETF is consist of government and those related to the government and large corporations.
The top holdings as of the recent record include Republic of the Philippines, Republic of Indonesia, Islamic Republic of Pakistan and the Democratic Socialist Republic of Sri Lanka.
It goes to show that the ETF is involved in a big industry. Thus, investors like you are secured in the purchase you made.
CEO of Dr Wealth. Built a business to empower DIY investors to make better investments. A believer of the Factor-based Investing approach and runs a Multi-Factor Portfolio that taps on the Value, Size, and Profitability Factors. Conducts the flagship Intelligent Investor Immersive program under Dr Wealth. An author of Secrets of Singapore Trading Gurus and Singapore Permanent Portfolio. Featured on various media such as MoneyFM 89.3, Kiss92, Straits Times and Lianhe Zaobao. Given talks at events organised by SGX, DBS, CPF and many others.