Singapore Exchange (SGX) has added two new exchange-traded funds (ETFs) to its market, giving investors new ways of gaining exposure to Indonesia and Thailand.
The new funds will be listed by Lyxor International Asset Management, a subsidiary of Société Générale, and brings the total number of ETFs on SGX to 92.
The Thai ETF will offer exposure to the SET 50 Total Return Index and the Indonesian ETF will cover the MSCI Indonesia Index.
SGX reported a 36% increase in turnover on ETFs in 2011, with the top three most traded instruments comprising SPDR Gold Shares, iShares MSCI India ETF and DB X-trackers MSCI Asia Ex-Japan ETF. Other Thai and Indonesian ETFs were also among the most actively traded last year.
“These new listings will give investors a wider choice when selecting a benchmark index that fits their investment portfolio,” said Nels Friets, head of securities at SGX. “It also adds on to our current wide spectrum of ETFs covering equity, fixed income, money market and commodities, consistent with our positioning as the Asian gateway for global investors wanting to access growth and capital in Asia.”
SGX claimed it is the first Asian exchange to list ETFs based on Asia-focused sectoral markets, high-yield equity, fixed income, and frontier markets.