ETFs (or exchange-traded funds) are companies engaged in the ownership and management of profit yielding assets across several sectors of the Singaporean economy- including real estate investment sectors, from healthcare to commerce, industry and hospitality. These assets are predominantly in form of shares and securities listed and traded on the Singapore Stock Exchange (SGX). Exchange-traded funds typically operate a pool of securities and investments, which may include stocks, bonds or commodities. This affords them the ability to massive, sizeable amounts of investments across various industries or within particular sectors. In general, they can be categorised as follows; stock, sector, active, passive, commodity, passive and active, bond, stock, sector, commodity, and currency, leveraged exchange-traded funds or inverse. Basically, in Singapore, ETFs are grouped into 4 classes: fixed income ETFs, real estate investment trusts, commodities and equity. This article presents the top 10 ETFs in Singapore, based on data and statistics extracted from the Singapore Stock Exchange.
Top 10 ETFs (Exchange Traded Funds) in Singapore
1. ISHARES BARCLAYS USD ASIA HY BOND ETF
Singapore Stock Exchange Code: 09P
Ishares Barclays USD Asia High Yield Bond is an exchange-traded fund dedicated to investible American Dollar-tied securities issued by governments and business organisations from the Asian region. This ETFs’ geographical sector however excludes Japan. The ETF was listed on the Singapore Stock Exchange in 2011. This ETF closed at 7.53% on the Singapore Stock Exchange after the day’s trading for April 1, 2022. Ishares Barclays USD Asia High Yield Bond, which belongs to the class of bond ETFs, ranked among the top dividend-paying ETFs for the year 2020, generating a high annual yield of up to 6.6%. This bond ETF, which is benchmarked against the Barclays Asia USD High Yield Diversified Credit, usually offers quarterly dividend payouts. The ETF’s fund size for the first quarter of 2020 was valued at S$137.5 million. Between March 2021 and March 2022, the ETF has made five dividends payments calculated at between 0.09 to 0.15 USD per security.
2. LION-PHILLIP S-REIT ETF
Singapore Stock Exchange Code: CLR
This ETF, known in full as the Lion-Phillip Singapore Real Estate Investment Trust Exchange Traded Fund, belongs to Lion Global Investors and Phillip Capital Management. This ETF offers investment opportunities in the Morningstar® Singapore REIT Yield Focus Index, which is comprised entirely of Singaporean real estate investment trusts (S-REITs). The ETF placed in second, according to the Singapore Stock Exchange, with a dividend yield of 6.0% for the year 2020. The ETF’s fund size for the first quarter of 2020 was valued at S$140.4 million. This ETF typically offers semi-annual dividend payouts. The ETF belongs to the category of REIT ETFs and is renowned for being exclusively Singaporean. Also, the Lion-Philip S-Reit ETF has made a name for itself for giving regular profits and its connections to leading real estate investment trusts in Singapore. Its expense ratio, as at 2021, was at 0.6%. Between March 2021 and March 2022, the ETF has made five dividends payments calculated at between 0.0026 to 0.0135 S$ per security. Lion-Phillip S-REIT ETF was listed on the Singapore Stock Exchange in 2017.
3. PHILLIP SING INCOME ETF
Singapore Stock Exchange Code: OVQ
Phillip Sing Income Exchange Traded Fund, an equity ETF, aggregates investors funds for investment in first-rate stocks from 30 business companies listed on the Singapore Stock Exchange. This ETF is denominated in Singaporean Dollars. The ETF’s fund size for the first quarter of 2020 was valued at S$42.3 m with an expense ratio of 1%. Its dividend yield for 2020 totalled 5.2%. This ETF pays out its dividends on a semi-annual basis. In the year 2018, the Philip Sing Income RTF was listed on the Singapore Stock Exchange in 2018. Between January 2021 and January 2022, the ETF has made four dividends payments calculated at between 0.002 to 0.02 S$ per security.
4. NIKKOAM-STRAITSTRADING ASIA EX JAPAN REIT ETF
Singapore Stock Exchange Code: CFA/COI
Categorised under REITs ETFs class, this ETF posted a 5.1% yield on dividends for the year 2020, with a fund size for the first quarter of 2020 valued at S$200.4 million. Its expense ratio 0.6% at the time, with a quarterly dividend pay-out arrangement. This ETF is benchmarked against the ‘FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index’. Between October 2021 and April 2022, the ETF would have made five dividends payments calculated at between 0.00504 to 0.0127 S$ per security. This ETF first appeared on the Singapore Stock Exchange in the year 2017.
5. SPDR STI ETF
Singapore Stock Exchange Code: ES3
Benchmarked against the Strait Times Index, this ETF usually offers semi-annual pay-outs on dividends. Its fund size for the first quarter of 2020 was valued at S$ 827.8 m. This ETF, categorised under the equities asset class, returned a yield of 4.6% on dividends in 2020 with an expense ratio of 0.3%. This ETF is reputed for offering a cost-effective, sustainable passive investment strategy. It unlocks investment opportunities in first-rate equities of the leading 30 companies listed on the Singapore Stock Exchange. Between October 2021 and April 2022, the ETF would have made five dividends payments calculated at between 0.00504 to 0.0127 S$ per security. Between August 2021 and February 2022, the ETF has made five dividends payments calculated at between 0.005 to 0.041 S$ per security. SPDR STI ETF made a debut on the Singapore Stock exchange in the year 2002.
6. NIKKO AM SINGAPORE STI ETF
Singapore Stock Exchange Code: G3B
Nikko AM Singapore STI ETF is equally categorised under the equities asset class and offers yearly returns on dividends. This ETF, benchmarked against the Straits Times Index, posted a 4.5% yield on dividends with an expense ratio of 0.3% for 2020. The ETF had a fund size of 282.1% in Quarter 1 of 2020. Nikko AM Singapore STI ETF is known for its high returns on investment. Between January 2020 and January 2022, the ETF has made five dividends payments calculated at between 0.0496 to 0.0606 S$ per security. Nikko AM Singapore STI ETF was listed on the Singapore Stock Exchange in 2009.
7. ISHARES USD ASIA BOND ETF
Singapore Stock Exchange Code: N6M
Ishares USD Asia Bond ETF has the JP Morgan Asia Credit Index- Core as its benchmark and has its investments categorised under the bonds assets class. In 2020, the ETF posted a yield of 4.2% on dividends with an expense ratio of 0.3%. Its fund size for 2020 Q1 was priced at 58.1 million Singaporean Dollars. This ETF offers quarterly pay-outs on dividends. Between March 2021 and March 2022, the ETF has made four dividends payments calculated at between 0.08 to 0.1 USD per security. Ishares USD Asia Bond ETF was listed on the Singapore Stock Exchange in 2011.
8. SPDR S&P 500 ETF TRUST
Singapore Stock Exchange Code: SPY
This ETF, benchmarked against the S&P 500 Index, posted 2.1% returns on dividends with a fund size valued at S$ 26.3 (as of the first quarter of 2020) with an expense ratio of 0.1%. Normally, this ETF usually gives pay-outs of profits to investors on a quarterly basis. Between September 2021 and March 2022, the ETF has made five dividends payments calculated at between 1.36 to 1.63 USD per security. This ETF is regarded as having assets with sustainable profitability as well as better performance prospects in the long run. SPDR S&P 500 ETF Trust was first listed on the Singapore Stock Exchange in 2001.
9. NIKKOAM SGD IG CORP BOND ETF
Singapore Stock Exchange Code: MBH
This ETF, benchmarked against the iBoxx SGD Non-Sovereigns Large Cap Investment Grade Index, returned 2.1% yield dividends with a fund size valued at 523.3 Singaporean Dollars (as of the first quarter of 2020) with an expense ratio of 0.3%. The ETF offers annual dividend pay-outs. The ETF has made five dividend payments at the rate of between 0.0049 and 0.0145 SGD between January 2019 and January 2022. The NikkoAM SGD IG Corp Bond ETF was first listed on the Singapore Stock Exchange in 2018.
10. ABF SINGAPORE BOND INDEX FUND ETF
Singapore Stock Exchange Code: A35.
The ABF Spore Bond Index Fund ETF is benchmarked against the iBoxx ABF Singapore Bond Index Total Return Series. With an estimated fund size of S$943.6 million in the first quarter of 2020, the ETF posted a 2.0% return on dividends. This ETF offers yearly payouts of dividends. Between January 2019 and January 2022, the ETF has made five dividends payments calculated at between 0.0123 to 0.0262 SGD per security. The ABF Spore Bond Index Fund ETF was first listed on the Singapore Stock Exchange in 2005.