ETFs turnover in Singapore jumps 56% in 2009 as diverse product class draws investors


ETFs turnover in Singapore jumps 56% in 2009 as diverse product class draws investors..

            Turnover of exchange-traded funds (ETFs) listed on Singapore Exchange (SGX) grew 56% to S$4.6 billion in 2009, the third straight year in which record turnover was achieved.

            With about 90% of ETFs listed here focused on offshore markets and other non-equity underlying instruments such as commodities, SGX offers investors one of the most diversified and internationalised ETF markets in Asia. ETFs with a non-domestic focus also account for over 90% of ETF turnover on SGX, unlike most other Asian markets, where ETFs with a domestic focus tend to dominate ETF trading.


            “SGX offers investors a diverse range of ETFs in terms of underlying markets and instruments. This diversity has facilitated strong growth in ETF turnover as investors increasingly turn to SGX-listed ETFs for asset allocation and risk management,” said Mr Thomas Tey, Senior Vice President and Head of Product Management at SGX.


            “Retail participation in ETFs has also improved considerably due to joint efforts with issuers and broker channels in investor education, regional seminars and ETF research reports,” Mr Tey added.


            During the year, investors continued to leverage on SGX-listed ETFs to access, in a cost- efficient and transparent manner, markets that have limited access. The three most active ETFs by turnover were the iShares MSCI India ETF, the Lyxor ETF India (S&P CNX Nifty) and the SPDR Gold Shares ETF which together accounted for about 60% of total ETF turnover.


            Six more new ETFs were listed on SGX today, bringing its total number of ETFs to 49 and making SGX Asia’s third-biggest market in terms of ETF listings.  SGX added 20 ETFs in 2009, including a China A-shares ETF, emerging markets ETFs, European and US equity-based ETFs as well as the first short ETF and first money market ETF in Asia.



            SGX – Listed ETFs show strong growth in turnover

            Year                 Trading Value                    Y-O-Y % growth
            2008                   S$2.94 billion                            155%
            2009                    S$4.60 billion                              56%


            Source: ETFWorld – ingapore Exchange (SGX)

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