Of the ETFs, 45% or $6.4 billion are equities-focused, 29% or $4.2 billion are on bonds, 17% or $2.5 billion are gold ETFs, while REIT ETFs make up the remaining 8% or $1.2 billion.
Geographically, domestic-focused strategies make up 40% of the total AUM while Asia-focused strategies make up another 39%. The latter is led by China, regional bonds and REITs.
“This balanced mix not only cements Singapore’s position as a home-market hub but also as the obvious launchpad for investors seeking exposure to Asia’s growth story,” write Foo and Ling.
Secular growth themes include ETFs tracking major emerging markets like China or India, and China and/or Southeast Asian technology while ETFs comprising SGX-listed REITs remain popular for their steady yield.
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“This mix enables investors to balance their portfolios with both growth and income – an appealing proposition in today’s fluid environment (e.g., tariffs, interest rates),” the analysts explain.
As at their report, the Singapore ETF market has crossed a “critical threshold” exceeding $1 billion for five consecutive quarters. In 2Q2025, activity among Singapore ETFs surpassed $1.6 billion, which reflects sentiment that ETFs are increasingly viewed as a mainstream investment tool in Singapore to gain exposure to the broader markets. It is also deemed to be an efficient and low-cost approach compared to that of a niche product, the analysts write.
The market is also supported by a growing range of offerings on the market. On Aug 18, JP Morgan Asset Management (JPMAM) announced that it has registered eight more active ETFs in Singapore. Seven of the ETFs are the bank’s seven flagship research enhanced index (REI) ETFs while one of them, the JPMorgan USD Ultra-Short Income Active UCITS ETF is the world’s largest active fixed income ETF according to Bloomberg data as of Aug 11.
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To the DBS analysts, JPMAM’s registration “demonstrates strong confidence in the market’s potential and local demand for these products”.
“Flagship ETFs tracking the STI Index and gold have reached record AUMs, buoyed by recent rallies in the Straits Times Index (STI) and gold prices. This further reinforces the viability of ETF investing for broad market exposure,” they add.
Eight SGX-listed ETFs for a well-diversified global, multi-asset portfolio
In their report, Foo and Ling are recommending eight SGX-listed ETFs for a well-diversified global, multi-asset portfolio.
In investors’ core portfolio, the DBS analysts have proposed including the SPDR S&P 500 and the iShares MSCI AxJ Climate Action. US equities are still “too big to ignore” at this point and the SPDR S&P 500 ETF, which tracks the S&P 500 index, will serve as a “foundational holding” for investors seeking broad exposure to the US market. The SPDR S&P 500 ETF is one of the largest and most traded ETFs globally with US$652.1 billion ($838.6 billion) in assets. Its top holdings include Apple, Microsoft, Nvidia, Amazon and Alphabet.
Meanwhile, the iShares MSCI AxJ Climate Action ETF, which manages about US$1.94 billion in assets, offers broad equity exposure in Asia excluding Japan. The ETF has close to 500 holdings which span multiple sectors such as technology, financials and consumer goods. The fund tracks the MSCI AC Asia ex‑Japan Climate Action Index, which incorporates thematic criteria focusing on climate alignment and ESG. Top holdings include heavyweight regional names such as TSMC, Tencent, and Alibaba, each contributing roughly 5% - 6% to the portfolio.
For income, the analysts recommend Nikko AM STI, which tracks the FTSE Straits Times Index, thereby providing exposure to 30 of Singapore’s largest companies. The ETF’s top includes include the three Singapore banks, DBS, Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank (UOB) and Singapore Telecommunications (Singtel). The ETF offers a dividend yield of 4.2%.
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Another ETF for income investors is the Lion-Phillip S-REIT ETF, which is “unparalleled” for its stable yield of over 5%. The ETF, which tracks the Morningstar Singapore REIT Yield Focus Index, offers a diversified exposure to Singapore-listed REITs across its various sub-sectors. Major holdings include Capitaland Ascendas REIT (CLAR), CapitaLand Integrated Commercial Trust (CICT) and Mapletree Industrial Trust (MINT). The ETF offers a net indicative yield of 5.6%.
For growth ETFs, investors should look at the Lion-OCBC HS Tech ETF to ride the technology wave. The ETF tracks the Hang Seng Tech Index, which focuses on Hong Kong-listed technology companies including businesses in internet services, e-commerce semiconductors and cloud computing. Top holdings include Tencent, Alibaba, NetEase, Xiaomi and Meituan.
Another growth ETF is the CSOP iEdge Southeast Asia+ Tech ETF, which offers equity exposure in Southeast Asia and India spanning sectors such as electronic components, software and consulting, retail and industrial services. The fund tracks the iEdge Southeast Asia+ TECH Index and holds about 30 stocks. Top holdings include Delta Electronics Thailand, Sea Limited, Grab, Astra International, Wipro, Infosys and GoTo.
“The ETF’s key strength lies in its diversified exposure to high-growth Southeast Asian and Indian tech leaders. However, drawbacks include emerging market volatility and stock concentration risk in a small number of names,” say Foo and Ling.
Finally, investors looking for diversifiers, should look at the ABF Singapore Bond Index Fund and SPDR Gold Shares ETF.
The former tracks the iBoxx ABF Singapore Bond Index, which offers investors exposure to a mix of Singapore-dollar bonds issued by the Singapore government, quasi‑government bodies such as HDB, LTA, and Temasek, as well as bonds offered by other Asian governments. The ETF’s top holdings are primarily Singapore sovereign bonds, with the top five holdings ranging between 5% to 7% each, alongside quasi-government bonds from HDB, LTA, and Temasek.
The latter, which is the largest and most widely traded physically backed gold ETF in the world, has approximately US$101.5 billion in AUM. It tracks the LBMA Gold Price PM benchmark, maintaining alignment with spot gold prices. “As a single-asset commodity ETF, GLD offers exposure exclusively to gold bullion, offering inflation protection and robust diversification, as gold typically shows a low correlation with equities and bonds,” note the analysts.
