The increased trading was largely due to strong interest in iShares MSCI India ETF and Lyxor ETF China (Hang Seng China Enterprises Index). In addition, total ETF trading value in the first nine months of this year has more than trebled to S$565 million compared to the same period last year.
| SGX-listed ETFs | Jan-Sept 2007 | Jan-Sept 2006 | % Growth |
| Total Trading Value | S$565 million | S$176 million | 221% |
| Average Daily Volume | S$3 million | S$943,480 | 218% |
“ETFs have gained traction as investors become increasingly aware of its benefits. This includes the use of ETFs as alternatives to conventional unit trusts for portfolio investments and wealth management,” said Mr Chew Sutat, SGX Executive Vice President & Head of Development. “Going forward, SGX is keen to explore ETFs based on the FTSE ST Index Series of indices that will be launched in January 2008. This will broaden the suite of domestic ETFs that could be of interest to our investors, in addition to ETFs on regional markets.”
ETFs are cost-efficient investment funds traded on the exchange that allow investors to gain access and diversification to equity and commodities markets. ETFs can be traded at any time of the trading day at the prevailing market price. This has been increasingly important in times of market volatility, as investors can get in and out of the market at any time and not at the end of the day as in conventional unit trusts.
SGX currently has 17 ETFs covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan and also on commodities, e.g. gold.
