ETF trading volume and value hit new highs on SGX

EXCHANGE-traded funds (ETFs) listed on the Singapore Exchange (SGX) have hit record levels for two months in a row – both in terms of trading value and volume.

For May, trading value rose by more than half to a record $836.2 million, from April’s record $533.2 million. Total trading value for the first five months of the year was $1.95 billion, up 62 per cent year-on- year.

These trading value records came as May trading volume touched a high of 121.4 million shares, 42 per cent higher than April’s record of 85.7 million shares. Total trading volume for January to May more than doubled year- on-year to 316.2 million shares from 132.3 million shares.

ETFs, which are funds listed and traded on a stock exchange, aim to track the performance of an index and provide access to a wide variety of markets and asset classes.

The jump in the value of ETFs traded is notable, given that asset values this year are below last year’s highs, SGX said yesterday.

The strong interest in the iShares MSCI India ETF, Lyxor ETF MSCI AC Asia Pacific ex-Japan and the two Straits Times Index (STI) ETFs – DBS Singapore STI ETF and streetTRACKS® Straits Times Index Fund – contributed to the record volume.

‘The substantial growth in traded value and volume of ETFs shows that this product continues to gain traction with retail investors,’ said Andrew Ler, SGX senior vice-president & head of private investors.

‘As part of our strategy to make SGX the Asian hub for investors to access the world, we continue to make new markets available to investors, including ETFs on Eastern Europe, Latin America and emerging markets launched this year.’

SGX currently has 35 ETFs covering worldwide equity markets such as Singapore, India, North Asia, Asean, the United States, Eastern Europe, Latin America and emerging markets, as well as commodities, including gold.

Mr Ler noted that the wide range of ETFs listed on SGX ‘makes them worthy of serious consideration in investors’ overall portfolio allocation’.

He added that SGX’s member companies have produced comprehensive ETF wealth allocation reports for investors.

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