S'pore ETFs boosted by local stock rally

Most equity markets rebounded from their February lows after the Federal Reserve reaffirmed its gradual approach to future interest rate hikes.
Most equity markets rebounded from their February lows after the Federal Reserve reaffirmed its gradual approach to future interest rate hikes.PHOTO: REUTERS

3 STI ETFs average total return of 5.5% in March: SGX report

Exchange-traded funds (ETFs) which track the local market got a lift last month as Singapore stocks rallied.

The SPDR Straits Times Index ETF, Nikko AM Singapore STI ETF and ABF Singapore Bond Index ETF were among the top 25 most traded ETFs in March, according to a report from the Singapore Exchange (SGX) yesterday.

ETFs are investment funds listed and traded on a stock exchange.

The majority aim to track the performance of an index and provide access to a wide variety of markets and asset classes, including local stocks, international securities, bonds, commodities or money markets.

The three Straits Times Index (STI) ETFs averaged a total return of 5.5 per cent in March, with the Nikko AM Singapore STI ETF posting the highest total return of 7 per cent over the month, said the SGX My Gateway report.

This came as the benchmark STI gained 6.5 per cent in March.

Most equity markets rebounded from their February lows after the United States Federal Reserve reaffirmed its gradual approach to future interest rate hikes.

The three ETFs also averaged a dividend yield of 2.9 per cent in the past 12 months.

The SPDR Straits Times Index ETF maintained a dividend yield of 3.5 per cent, while the Nikko AM Singapore STI ETF and ABF Singapore Bond Index ETF had dividend yields of 3.1 per cent and 2.2 per cent, respectively.

The ABF Singapore Bond Index ETF had global assets under management (AUM) of US$409.9 million (S$551 million) as of March 31, while the SPDR Straits Times Index ETF had global AUM of US$350.7 million. The Nikko AM Singapore STI ETF's global AUM came in at US$76.2 million.

Last month, the 10 most active ETFs on the Singapore bourse averaged a total return of 3.2 per cent.

The three best performers in terms of total returns were db x-trackers CSI 300 UCITS ETF, iShares MSCI India Index ETF and db x-trackers MSCI AC Asia Ex Japan Index UCITS ETF.

The three most active ETFs in March were SPDR Gold Shares, db x-trackers MSCI AC Asia Ex Japan Index UCITS ETF, and iShares MSCI India Index ETF.

A version of this article appeared in the print edition of The Straits Times on April 02, 2016, with the headline 'S'pore ETFs boosted by local stock rally'. Print Edition | Subscribe