Singapore is home to a thriving financial market, and many investors are looking for ways to get involved. A popular way to do this is through ETFs or exchange-traded funds. ETFs offer many benefits, including diversification, liquidity, and low costs. They can be an excellent way for Singaporean investors to get exposure to various assets and markets.
So, which are the best ETFs for Singaporean traders? Here are our top picks:
SPDR STI ETF
The SPDR STI ETF is an index fund that tracks the Straits Times Index (STI). The STI comprises 30 large-cap stocks on the Singapore Exchange (SGX).
The SPDR STI ETF offers investors exposure to some of Singapore’s largest and most well-known companies, including DBS Group Holdings, Singtel, and United Overseas Bank.
iShares MSCI Singapore ETF
The iShares MSCI Singapore ETF is an index fund that tracks the MSCI Singapore Index. The MSCI Singapore Index comprises large and mid-cap stocks that trade on the SGX.
The iShares MSCI Singapore ETF provides exposure to a wide range of companies, including Keppel Corporation, Sembcorp Industries, and CapitaLand.
Nikko AM Singapore STI ETF
The Nikko AM Singapore STI ETF is an index fund that tracks the Singapore Total Market Index (SG TMI). The SG TMI comprises all the stocks that trade on the SGX.
The Nikko AM Singapore STI ETF provides exposure to various companies, including small, medium, and large-cap stocks.
ABF Singapore Bond Index Fund
It’s a bond fund that tracks the FTSE All-World Government Bond Index (Singapore). The FTSE All-World Government Bond Index (Singapore) comprises government bonds from around the world denominated in Singapore dollars. The ABF Singapore Bond Index Fund offers investors exposure to government bonds from countries like the United States, the United Kingdom, and Japan.
Lion-Phillip S-REIT Index Fund
The Lion-Phillip S-REIT Index Fund is a real estate fund that tracks the FTSE EPRA/NAREIT Developed Asia ex-Japan Real Estate Investment Trusts Index. The FTSE EPRA/NAREIT Developed Asia ex-Japan Real Estate Investment Trusts Index comprises REITs from developed Asian markets, excluding Japan. The Lion-Phillip S-REIT Index Fund offers investors exposure to REITs from Singapore, Hong Kong, and South Korea.
SPDR S&P 500 ETF
The SPDR S&P 500 ETF is an index fund that tracks the S&P 500 Index. The S&P 500 Index comprises 500 large-cap stocks that trade on major US exchanges. The SPDR S&P 500 ETF provides exposure to some of the US’s largest and most well-known companies, including Apple, Amazon, and ExxonMobil.
iShares Core MSCI Emerging Markets ETF
The iShares Core MSCI Emerging Markets ETF is an index fund that tracks the MSCI Emerging Markets Index. It’s made up of large and mid-cap stocks from emerging markets worldwide. The iShares Core MSCI Emerging Markets ETF provides exposure to many companies, including Alibaba, Tencent Holdings, and Baidu.
iShares China Large-Cap ETF
The iShares China Large-Cap ETF is an index fund that tracks the FTSE China 50 Index. The FTSE China 50 Index comprises 50 large-cap stocks that trade on the Hong Kong Stock Exchange. The iShares China Large-Cap ETF provides exposure to some of China’s largest and most well-known companies, including Ping An Insurance Group, China Construction Bank, and Industrial & Commercial Bank of China.
SPDR Gold Shares
The SPDR Gold Shares is a gold fund that tracks the price of gold.
The SPDR Gold Shares offer investors exposure to precious metal gold.
iShares 7-10 Year Treasury Bond ETF
The iShares 7-10 Year Treasury Bond ETF is a bond fund that tracks the Barclays US 7-10 Year Treasury Index. The Barclays US 7-10 Year Treasury Index consists of government bonds with maturities of seven to ten years. The iShares 7-10 Year Treasury Bond ETF offers investors exposure to government bonds from the United States for seven to ten years.
Bottom line
These are just some of the many ETFs available to investors. When choosing an ETF, it is crucial to consider your investment objectives and risk tolerance. You should also consult with a financial advisor (follow this link) to ensure that the ETF is suitable for your portfolio.
