Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up





With the Ukraine Crisis weighing global equity markets since 23 Feb, the SPDR Goldshares ETF has seen the most turnover of the ETFs listed for trading in Singapore. The SPDR Goldshares ETF has gained 8% in SGD terms since 23 Feb, and currently comprises 11% of the S$12.9 billion AUM that is invested across the 36 ETFs. 
	 
	
The 8.4% gain in the price of Gold has more than offset the 5.8% decline in the STI since 23 Feb. SGX lists for trading two ETFs that track the STI – the SPDR Straits Times Index ETF and the Nikko AM Singapore STI ETF which are majority weighed to the Bank Sector, with the Sector among the weaker Global stocks since 23 Feb.    
	 
	The 36 ETFs have seen close to S$700 million of net inflows in the 2022 year to 4 March, mostly attributed to the iShares USD Asia High Yield Bond Index ETF. The Nikko AM - StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF which debuted in Jan, and the Lion-Phillip S-REIT ETF have seen the next highest net inflows. 

 

Last night, spot Gold closed above US$2,000/oz., and at US$2,045/oz. at the Asia close today, spot Gold was trading within 2% of the August 2020 all-time high at US$2,072/oz. This gain was on the back of US President Biden announcing embargos on Russian energy exports, while both the LBMA and CME have now announced suspensions for the use of Russian gold and silver in contract delivery.  In Singapore, the SPDR Gold ETF (stock code: O87 / GSD) has been the most traded ETF by turnover over the past 10 sessions, with the unit price gaining 8.4% in SGD terms, as the unit price of the ETF inclined from US$176.78 to US$189.11. The price of gold bullion maintains low correlations to most other asset classes. The World Gold Council maintain that that including assets with a low correlation to each other assists portfolio managers to reduce overall portfolio risk. As a simple educative example, an evenly balanced portfolio of three ETFs that each track the price of Gold, the STI and performance of Singapore Government Bonds averaged annualised total returns of 4.9% over the past five years, with calendar year average total returns ranging from -1.5% in 2018 to +10.2% in 2019. Following the microstructure changes implemented in January this year, investors can trade the SPDR Gold ETF in single unit, with per trade value at around S$260 when trading via its SGD counter (stock code: GSD)



      
    
    STI, SPDR Gold ETF


Of the suite of 36 ETFs, the SPDR STI ETF has seen the next highest turnover during the Ukraine Crisis. While the STI ETFs began the year among the strongest performing ETFs, the effect of the Ukraine crises on the pace for rate hikes in the US has weighed bank stocks. In the two weeks around mid-Feb, expectations for the upcoming FOMC interest rate hikes became very hawkish, with ~60% expectations on 14-15 Feb for a 50 basis points (bps) hike at the 16 March FOMC. The new bout of global economic uncertainty demonstrated by the pick-up market volatility has seen these hawkish expectations reduced to no expectations for a 50 bps hike at the 16 Mar FOMC, with majority expectations now at a 25 bps hike. Bank stocks maintain positive correlations in their net interest income to US interest rates, with the STI’s biggest heavyweight, DBS Group Holdings, maintaining a few weeks back that the bank maintained net interest income sensitivity of S$18 million to S$20 million per basis point of USD rates. While globally listed banks make up more than less 10% of global market capitalisation, they make up more than 40% of the STI weight. Thus, the impact of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank averaging 10% declines since 23 Feb has impacted the STI much more than global Indices have been impacted by global bank stocks declining 9%.  
The five strongest performing ETFs listed in Singapore in the 2022 year through to the end of last week included the Phillip MSCI Singapore Daily (-1X) Inverse Product, SPDR Goldshares ETF, the Xtrackers MSCI Indonesia Swap UCITS ETF, the Principal FTSE ASEAN40 ETF and the Principal S&amp;P APAC Dividend ETF. Meanwhile, the least performing of the ETF suite included the Phillip MSCI Singapore Daily (2x) Leveraged Product, the Lion-OCBC Securities Hang Seng TECH ETF, the NikkoAM-StraitsTrading MSCI China Electric Vehicles And Future Mobility ETF, the iShares USD Asia High Yield Bond Index ETF and the Lyxor MSCI China ESG Leaders Extra (DR) UCITS ETF.  
Combined the 36 ETFs also booked close to S$700 million of net inflows in the 2022 year to 4 March, mostly attributed to the iShares USD Asia High Yield Bond Index ETF. The NikkoAM-StraitsTrading MSCI China Electric Vehicles and Future Mobility ETF which debuted in January, and the Lion-Phillip S-REIT ETF have seen the next highest net inflows in the 2022 year through to 4 March.  
The 36 ETFs listed on SGX, sort by highest inflows in the 2022 year to 4 March are tabled below.




			ETF Name
			
			
			Prim. Code
			
			
			Sec. Code
			
			
			Fund Focus
			
			
			2021  Inflow/ Outflow S$M
			
			
			AUM as of Dec 2021  S$M
			
			
			Inflows YTD (to 4 Mar) S$M
			
			
			AUM 4 Mar 22 S$M
			
			
			Total Returns YTD (to 4 Mar) 
			
		


			iShares USD Asia High Yield Bond Index ETF
			
			
			O9P
			
			
			QL3
			
			
			Asia USD Bonds
			
			
			2941.2
			
			
			2,948
			
			
			689.8
			
			
			3,303
			
			
			-11.5
			
		


			NikkoAM-StraitsTrading MSCI China EV &amp;  Future Mob ETF
			
			
			EVS
			
			
			EVD
			
			
			China Equities
			
			
			N/A
			
			
			N/A
			
			
			41.8
			
			
			42
			
			
			-11.7
			
		


			Lion-Phillip S-REIT ETF
			
			
			CLR
			
			
			 
			
			
			Singapore REITs
			
			
			51.8
			
			
			241
			
			
			38.2
			
			
			266
			
			
			-3.2
			
		


			Phillip SGD Money Market ETF
			
			
			MMS
			
			
			MMT
			
			
			SGD Bonds
			
			
			-11.0
			
			
			110
			
			
			33.2
			
			
			143
			
			
			0.0
			
		


			Lion-OCBC Securities Hang Seng TECH ETF
			
			
			HST
			
			
			HSS
			
			
			China Equities
			
			
			293.9
			
			
			291
			
			
			19.9
			
			
			264
			
			
			-15.7
			
		


			SPDR S&amp;P 500 ETF
			
			
			S27
			
			
			 
			
			
			US Equities
			
			
			17.5
			
			
			72
			
			
			15.6
			
			
			82
			
			
			-7.3
			
		


			ABF Singapore Bond Index Fund
			
			
			A35
			
			
			 
			
			
			SGD Bonds
			
			
			110.2
			
			
			1,051
			
			
			5.8
			
			
			1,038
			
			
			-0.7
			
		


			NikkoAM-StraitsTrading Asia ex Japan REIT ETF
			
			
			CFA
			
			
			COI
			
			
			Asia REITs
			
			
			103.7
			
			
			349
			
			
			4.9
			
			
			340
			
			
			-3.1
			
		


			Xtrackers MSCI China UCITS ETF
			
			
			LG9
			
			
			TID
			
			
			China Equities
			
			
			37.5
			
			
			66
			
			
			2.3
			
			
			62
			
			
			-9.6
			
		


			Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - USD
			
			
			P60
			
			
			 
			
			
			APAC Equities
			
			
			0.0
			
			
			26
			
			
			1.9
			
			
			26
			
			
			-5.9
			
		


			iShares Asia Credit ETF
			
			
			N6M
			
			
			QL2
			
			
			Asia USD Bonds
			
			
			27.8
			
			
			108
			
			
			1.3
			
			
			103
			
			
			-4.2
			
		


			Lion-OCBC China Leaders ETF
			
			
			YYY
			
			
			YYR
			
			
			China Equities
			
			
			81.5
			
			
			84
			
			
			0.8
			
			
			80
			
			
			-5.3
			
		


			UOB APAC Green REIT ETF
			
			
			GRN
			
			
			GRE
			
			
			APAC REITs
			
			
			84.1
			
			
			84
			
			
			0.3
			
			
			81
			
			
			-5.2
			
		


			NikkoAM-ICBCSG China Bond ETF RMB Class
			
			
			ZHY
			
			
			ZHD
			
			
			China RMB Bonds
			
			
			11.4
			
			
			251
			
			
			0.0
			
			
			255
			
			
			1.7
			
		


			Phillip MSCI Singapore Daily (2x) Leveraged Product**
			
			
			LSS
			
			
			LSU
			
			
			SG Equities
			
			
			4.8
			
			
			5
			
			
			0.0
			
			
			N/A
			
			
			-17.3
			
		


			iShares MSCI India Index ETF
			
			
			I98
			
			
			QK9
			
			
			India Equities
			
			
			0.0
			
			
			142
			
			
			0.0
			
			
			131
			
			
			-6.9
			
		


			Phillip Sing Income ETF
			
			
			OVQ
			
			
			 
			
			
			SG Equities
			
			
			2.7
			
			
			64
			
			
			0.0
			
			
			64
			
			
			1.4
			
		


			UNITED SSE 50 CHINA ETF
			
			
			JK8
			
			
			 
			
			
			China Equities
			
			
			1.7
			
			
			28
			
			
			0.0
			
			
			27
			
			
			-5.9
			
		


			Phillip MSCI Singapore Daily (-1X) Inverse Product**
			
			
			SSS
			
			
			SSU
			
			
			SG Equities
			
			
			10.2
			
			
			10
			
			
			0.0
			
			
			N/A
			
			
			8.0
			
		


			Xtrackers MSCI Indonesia Swap UCITS ETF
			
			
			KJ7
			
			
			 
			
			
			Indonesia Equities
			
			
			-1.4
			
			
			19
			
			
			0.0
			
			
			20
			
			
			7.1
			
		


			SPDR®  DJIA ETF TRUST
			
			
			D07
			
			
			 
			
			
			US Equities
			
			
			0.0
			
			
			4
			
			
			0.0
			
			
			4
			
			
			-6.4
			
		


			Xtrackers MSCI Singapore UCITS ETF
			
			
			O9A
			
			
			 
			
			
			SG Equities
			
			
			-10.1
			
			
			6
			
			
			0.0
			
			
			5
			
			
			-6.9
			
		


			Lyxor MSCI China ESG Leaders Extra (DR) UCITS ETF
			
			
			P58
			
			
			 
			
			
			China Equities
			
			
			-3.5
			
			
			28
			
			
			0.0
			
			
			25
			
			
			-10.0
			
		


			Lyxor MSCI Emerging Markets UCITS ETF - Acc USD
			
			
			H1N
			
			
			 
			
			
			EM Equities
			
			
			2.4
			
			
			8
			
			
			0.0
			
			
			7
			
			
			-7.3
			
		


			Principal S&amp;P APAC Dividend ETF
			
			
			P5P
			
			
			QR9
			
			
			APAC Equities
			
			
			3.7
			
			
			23
			
			
			0.0
			
			
			23
			
			
			3.4
			
		


			Phillip APAC DIV REIT Leader ETF
			
			
			BYI
			
			
			BYJ
			
			
			APAC REITs
			
			
			-3.6
			
			
			19
			
			
			0.0
			
			
			18
			
			
			-5.1
			
		


			Lyxor MSCI India UCITS ETF - Acc USD
			
			
			G1N
			
			
			 
			
			
			India Equities
			
			
			0.0
			
			
			15
			
			
			0.0
			
			
			14
			
			
			-7.8
			
		


			Xtrackers II Singapore Government Bond UCITS ETF
			
			
			KV4
			
			
			 
			
			
			SGD Bonds
			
			
			1.6
			
			
			131
			
			
			-0.1
			
			
			130
			
			
			-0.5
			
		


			Principal FTSE ASEAN40 ETF
			
			
			M62
			
			
			QS0
			
			
			ASEAN Equities
			
			
			-8.7
			
			
			12
			
			
			-0.6
			
			
			12
			
			
			5.3
			
		


			Xtrackers FTSE Vietnam Swap UCITS ETF
			
			
			HD9
			
			
			 
			
			
			Vietnam Equities
			
			
			2.2
			
			
			19
			
			
			-1.6
			
			
			17
			
			
			-2.7
			
		


			NikkoAM-ICBCSG China Bond ETF SGD Class
			
			
			ZHS
			
			
			 
			
			
			China RMB Bonds
			
			
			20.8
			
			
			68
			
			
			-7.0
			
			
			61
			
			
			2.1
			
		


			Nikko AM SGD Investment Grade Corporate Bond ETF
			
			
			MBH
			
			
			 
			
			
			SGD Bonds
			
			
			26.5
			
			
			611
			
			
			-8.0
			
			
			588
			
			
			-1.3
			
		


			ICBC CSOP FTSE Chinese Government Bond ETF
			
			
			CYC
			
			
			CYB
			
			
			China RMB Bonds
			
			
			315.8
			
			
			1,953
			
			
			-12.7
			
			
			1,978
			
			
			1.6
			
		


			Nikko AM Singapore STI ETF
			
			
			G3B
			
			
			 
			
			
			SG Equities
			
			
			74.9
			
			
			601
			
			
			-23.7
			
			
			588
			
			
			3.1
			
		


			CSOP iEdge SREIT Leaders Index ETF
			
			
			SRT
			
			
			SRU
			
			
			Singapore REITs
			
			
			112.6
			
			
			115
			
			
			-27.2
			
			
			85
			
			
			-3.0
			
		


			SPDR GLD ETF
			
			
			O87
			
			
			GSD
			
			
			Gold
			
			
			-130.5
			
			
			1,356
			
			
			-30.5
			
			
			1,432
			
			
			7.8
			
		


			SPDR® Straits Times Index ETF
			
			
			ES3
			
			 
			
			SG Equities
			
			
			-135.4
			
			
			1,629
			
			
			-53.2
			
			
			1,605
			
			
			2.8
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			-3.2
			
		


			Total
			
			
			 
			
			
			 
			
			
			 
			
			
			4,036
			
			
			12,547
			
			
			691
			
			
			12,920
			
			
			 
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 4 March 2022) **Leveraged or Inverse Product.

 

ETFs are investment funds listed and traded intraday on a stock exchange. The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets. Each ETF gives investors access to the performance of the asset which comprises of the underlying index. Investing in the ETF is also less costly if one were to build a similar portfolio by buying the individual stocks. These portfolio products also provide exposure to international markets and asset classes that may be inaccessible to individual investors.  For more on ETFs, click here. 



DBS

Gold ETF Gains 8% in 10 Sessions