The Singapore Exchange (SGX) has reported a 56% growth in the trading of listed exchange-traded funds (ETFs) in 2009, the third straight year in which record turnover has been recorded.
Turnover of ETFs listed on SGX grew to S$4.6 billion (€2.3 billion), compared to S$2.94 billion in 2009.
ETFs generally represent a basket of securities that give investors exposure to an index or market sector through one instrument listed on an exchange. Around 90% of ETFs listed on SGX focus on offshore markets and other non-equity underlying instruments such as commodities. According to SGX, ETFs with a non-domestic focus account for over 90% of ETF turnover on the exchange.
“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 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.”
Six new ETFs have also been listed on SGX from today, bringing the total number of available ETFs to 49. The three most active ETFs on SGX 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.