State Street Investment Management makes case for Singapore equities; ETFs an accessible instrument to tap

The Edge Singapore04-27 01:00

The STI has outperformed the MSCI ACWI by 46.66% since Jan 2021Singapore equities are drawing renewed attention as investors look beyond the US for returns, income and lower volatility. From the ...

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From the ...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/special-event/state-street-investment-management-makes-case-singapore-equities-etfs-accessible?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n","source":"edge_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>State Street Investment Management makes case for Singapore equities; ETFs an accessible instrument to tap</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nState Street Investment Management makes case for Singapore equities; ETFs an accessible instrument to tap\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-27 01:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.theedgesingapore.com/news/special-event/state-street-investment-management-makes-case-singapore-equities-etfs-accessible?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS><strong>The Edge Singapore</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The STI has outperformed the MSCI ACWI by 46.66% since Jan 2021Singapore equities are drawing renewed attention as investors look beyond the US for returns, income and lower volatility. From the ...</p>\n\n<a href=\"https://www.theedgesingapore.com/news/special-event/state-street-investment-management-makes-case-singapore-equities-etfs-accessible?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1721427968.SGD","symbol_name":"BNP PARIBAS AQUA \"CRH\" (SGDHDG) INC","start_time":0,"source_url":"https://www.theedgesingapore.com/news/special-event/state-street-investment-management-makes-case-singapore-equities-etfs-accessible?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","article_id":"2630170310","we_media_id":null,"thumbnails":[],"rights":{"source":"edge_highlight","url":"https://www.theedgesingapore.com/news/special-event/state-street-investment-management-makes-case-singapore-equities-etfs-accessible?utm_source=Blog&utm_medium=RSS&utm_campaign=Tiger_Brokers_app_RSS","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2630170310","pubTimestamp":1777222800,"columns":[],"sourceInfo":{"source_id":"edge_highlight","name":"Edge"},"weMediaInfo":null,"summary":"The STI has outperformed the MSCI ACWI by 46.66% since Jan 2021","collect":0,"end_time":0,"defaultTopTitle":"theedgesingapore.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1721427968.SGD":"BNP PARIBAS AQUA \"CRH\" (SGDHDG) INC","MAS":"马斯科","STI.SI":"富时新加坡海峡指数","BK4096":"电气部件与设备","STT":"道富银行","LU1596574779.USD":"BNP PARIBAS AQUA \"C\" (USDHDG) ACC","BK4585":"ETF&股票定投概念","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","ES3.SI":"STI ETF","LU1894683264.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) ACC","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","LU1620156130.USD":"BNP PARIBAS AQUA \"C\" (USD) ACC","LU1894683348.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) INC","BK4086":"建筑产品","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","STI":"Solidion Technology Inc.","FDN":"First Trust Dow Jones Internet I","BK4135":"资产管理与托管银行","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","LU2413666004.HKD":"BNP PARIBAS AQUA \"CRH\" (HKDHDG) INC","BK4588":"碎股","BK4550":"红杉资本持仓","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU2413665964.HKD":"BNP PARIBAS AQUA \"C\" (HKD) ACC","LU1883839398.USD":"AMUNDI FUNDS INCOME OPPORTUNITIES \"A2\" (USD) ACC","NAV":"纳威司达","LU1620156213.USD":"BNP PARIBAS AQUA \"C\" (USD) INC","LU1543694498.USD":"法巴水资源基金RH MD Dis","LU1165135440.EUR":"BNP Paribas Aqua Classic Cap EUR"},"translate_title":"道富投资管理公司为新加坡股票辩护；ETF是一种可供利用的工具","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"STI.SI":0.9,"STT":1.5,"STI":1,"NAV":1,"MAS":1,"FDN":0.9,"ES3.SI":0.9},"content_text":"The STI has outperformed the MSCI ACWI by 46.66% since Jan 2021Singapore equities are drawing renewed attention as investors look beyond the US for returns, income and lower volatility. From the perspective of Kunhee Park, ETF equities investment strategist, APAC, at State Street Investment Management, the recent positive performance of the Straits Times Index (STI) should prompt investors to review how much exposure they have to Singapore rather than ignore it.\nThe STI has risen more than 94% in total return terms since end-April 2021, making it one of the best-performing single-country equity markets globally and ahead of the US in SGD terms. At the Shaping Tomorrow's Markets: ETF Strategies and Economic Outlook event hosted by The Edge Singapore in collaboration with State Street Investment Management on Mar 24, Park presented that the STI has outperformed the MSCI ACWI by 46.66% since Jan 2021, while Singapore’s weight in global indices has edged up from a trough of 0.3% in 2021 to 0.4% as at end-February 2026.\nFor Park, that strong run is not just a price story, but points to a broader shift in investor flows away from an overwhelming concentration in US equities. “More recently, we’re seeing a broadening and more opportunities outside of the US, particularly in Asia,” he says, while indicating that 76% and 85% of non-US countries in the MSCI ACWI outperformed the US market in 2024 and 2025 respectively. February flows also favoured developed markets ex-US, emerging markets and single-country exposures over the US.\nSingapore has been a beneficiary, though Park argues the inflows still do not fully match the market’s outperformance. He notes that Singapore-focused exchange traded funds (ETFs) globally recorded around $280 million in net inflows in February alone. At the same time, turnover on SGX has risen sharply, with total monthly market turnover increasing from just under $20 billion in December 2023 to $35 billion in January 2026, signalling deeper liquidity and stronger investor participation.\nWhile the inflows are undeniable, this does not signal for a complete portfolio switch. “I’m not saying the entirety of your portfolio into Singapore,” he says. “I’m saying you should take a closer look, more of a consideration into how much STI you are currently holding.”\nIn Park’s view, Singapore equities do present a compelling investment case, but this does not mean that it should completely replace global equities. Instead, perhaps act as a diversifier to improve portfolio construction at the margin.\nThe case for Singapore\nAccording to Park, three key pillars that support the Singapore equities stance are valuation, income and defensiveness.\nOn valuation, STI’s 10-year average PE ratio is about 15x times, and even after the latest rally, Park says it remains relatively cheap against developed market peers, the broader world index and Asia-Pacific markets. He adds that 2026 earnings growth consensus is still running at around 4% to 5%, suggesting that price gains have not fully detached from underlying earnings prospects.\nThe STI has also been popularly known for its consistent income. The STI’s dividend yield stood at 3.8% at end-February, higher than many regional peers and above alternatives such as T-bills, one-year fixed deposits and the CPF Ordinary Account. Park says this yield has also been supported by discipline rather than overstretch. “The average dividend payout ratio was around the 45% to 50%,” he says. “That means companies are paying out half of their earnings, roughly, and reinvesting the other half for growth.” In his view, that gives investors “confidence of the stability of the dividends” while preserving room for future expansion.\nIn addition, Park describes the STI as defensive, offering “a bit of a cushion” during periods of geopolitical and macro uncertainty, helped by its high bank weightings, lower exposure to technology and relatively stable dividends. State Street Investment Management’s data shows the STI has the lowest three-year annualised volatility among the Asian markets in its comparison set. The index’s correlation with the Russell 1000 was -0.1 over one year and stayed below 0.7 even over longer periods, which Park says makes Singapore useful as a diversifier. “Singapore has an incredibly low beta so it is more driven by local structural factors than top level broader markets,” he says.\nThat does not mean Singapore is a purely domestic story. The STI’s earnings base is geographically diversified and is a “gateway to global economic growth”. State Street Investment Management estimates that only 41% of constituent revenues come from Singapore, with 10% from broader Southeast Asia, 29% from the rest of Asia-Pacific and 20% from outside Apac. Park says this gives investors exposure to growth in markets such as Indonesia, Vietnam and Malaysia while reducing reliance on Singapore’s domestic cycle. In that sense, the STI offers both defensiveness and external growth exposure.\nStrong base\nHe points to strong policy support from the local government, such as initiatives by the Monetary Authority of Singapore (MAS) aimed at improving market liquidity, listings, research coverage and investor engagement, including the now $6.5 billion Equity Market Development Programme (EQDP) to help rejuvenate the equity market.\nPerhaps the strongest practical argument comes from the hypothetical portfolio analysis Park presented. Using historical data, State Street Investment Management found that adding a 10% STI allocation to an MSCI ACWI portfolio improved the risk-return profile over three and five years, with slightly higher returns and lower volatility. “I’m not arguing for 100% STI or a 100% Singapore equity allocation,” Park says. “But I ask you to consider potentially increasing your weight and taking a closer look at the benefits of adding such an index as the Straits Times Index into your portfolio, because it can have these positive, defensive cushioning characteristics while giving some attractive yield and upside potential.”\nGrowing popularity of ETFs\nIn a more practical aspect, there are easy ways for investors to ride on the STI’s gains. ETFs have turned out to be a popular investment product following their introduction in 2002. The first ETF to be listed on the SGX was the ETF with the stock code ES3, the State Street® SPDR® Straits Times Index ETF by State Street Investment Management. This is the most liquid and the most traded locally domiciled ETF today [1].\nDuring The Edge Singapore’s forum titled Shaping Tomorrow's Markets: ETF Strategies and Economic Outlook on March 24, a large part of the panel discussion focused on the merits of using the STI ETF during periods of volatility, such as the Iran war.\n\nTo take a step back, ETFs (exchange-traded funds) are baskets of assets, often stocks, that trade on an exchange, much like a stock. They are meant to replicate the index they track, but with a small displacement because of the expense ratio. Since their appearance on the SGX 24 years ago, ETFs have become a popular investment product for both retail and institutional investors.\nThe basket of assets in an ETF may track a wide range of indices including the STI and S&P 500. ETFs such as the State Street® SPDR® Straits Times Index ETF and State Street® SPDR® S&P 500® ETF Trust are often bought and sold on various trading platforms either as a diversification from single stocks and/ or sectors, or as a form of a hedge, as in the case of SPDR® Gold Shares (State Street Investment Management’s gold ETF). Often, when investors look to exposures in markets, an index ETF can work better than a narrow market representative such as a sector or a stock.\nJanjira Jaruprateepkul, Vice President and Head of Southeast Asia Intermediary at State Street Investment Management, explains that ETFs share the characteristics of the underlying shares of the index they track. “If you are familiar with unit trusts or funds, in the ETF world, it's quite unique in the sense that ETFs share the characteristics of the underlying stocks and funds (they represent),” she says.\nETFs offer two layers of liquidity - the primary market and the secondary market. The secondary market, is where most investors trade ETFs. Here, buyers and sellers of ETF shares place their orders through registered brokers, exchanging cash for ETF shares when buying and vice versa for selling.\nThe primary market supports ETF liquidity and allows ETFs to trade close to net asset value (NAV) throughout the day.\nETFs are often traded like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs NAV.\n“If you want to purchase the fund, or unit trust, you get to know the NAV, probably on the next day. With the ETF, which is traded on the exchange, you have the ability to see the real time pricing on the exchange. That means, when you execute the trade, especially at these uncertain times where you want to have that ability to be able to execute in real time, and to react to the situation,” Jaruprateepkul notes.\nWhen the demand for ETF shares exceeds or falls short of the shares available for sale in the secondary market, there will be disparities between the ETF market price and its NAV based on underlying security prices.\nThe primary market then provides additional liquidity, as market makers will engage authorised participants to create or redeem ETF shares to balance the supply and demand, thereby keeping ETF share prices close to their NAV.\n“The creation and redemption in the primary market adds a layer of liquidity to the ETF, because the authorised participants, or the participating dealer who has an agreement with the fund issuers like us, can create or redeem instantly within the window, and provide that liquidity in the secondary market. The exchange will be able to utilise those units immediately,” Jaruprateepkul explains.\nSince the STI ETF is liquid, a major advantage it has over unit trusts, investors can just sell out if they are spooked by the Iran war or buy if they see an opportunity. “When the war broke out, and you have certain a certain market view, such as buying into the Singapore market, you will be able to just trade STI ETF immediately, or if you wanted to sell away your US ETF,” she adds.\nThrough both active and but more often passive management, ETFs can offer cost-effective exposure to nearly every asset class, from core US equities to complex emerging market debt. As a result of this democratisation, a wide range of investors can now access hard-to-reach markets once only available to the largest institutions.\nShe shares there is strong participation in the ES3 from retail investors, with strong demand from CPF and SRS monies. She adds: “institutional clients always look ahead. They want to allocate more to Singapore and use ETFs as the tactical allocation. This year has seen a clear pickup in institutional demand, with the ES3 increasingly used to express views on the Singapore market.” \n\nState Street Global Advisors (SSGA) is now State Street Investment Management. Please go to statestreet.com/investment-management for more information.\nState Street Global Advisors Singapore Limited (“SSGA”), 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501.\nAll forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.\nThe prospectus in respect of the offer of the units (the \"Units\") in the State Street® SPDR® Straits Times Index ETF / State Street® SPDR® S&P 500 ETF Trust (the \"Fund\") is available and may be obtained upon request from State Street Global Advisors Singapore Limited (\"SSGA\", Company Registration number: 200002719D). Investors should read the prospectus before deciding whether to acquire Units in the Fund. The value of Units and the income accruing to such Units may fall or rise. Units in the Fund are not obligations of, deposits in, or guaranteed by, SSGA or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Past performance figures are not necessarily indicative of future performance of the Fund. Investors have no right to request SSGA to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (\"SGX-ST\"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.\nThe prospectus in respect of the Singapore offer of the shares (the ‘Shares’) in the SPDR Gold Trust (the ‘Trust’) is available and may be obtained upon request from State Street Global Advisors Singapore Limited (\"SSGA\") (Co. Reg. No: 200002719D). The value of Shares in the Trust and the income accruing to the Shares, if any, may fall or rise. Investors should read the prospectus of the Trust before deciding whether to purchase Shares. Shares in the Trust are not obligations of, deposits in, or guaranteed by, World Gold Trust Services, LLC, SSGA or any of their affiliates. You may wish to seek advice from a financial adviser before making a commitment to purchase Shares. In the event that you choose not to seek advice from a financial adviser, you should consider whether the Trust is suitable for you. Investors have no right to request the Sponsor to redeem their Shares while the Shares are listed. It is intended that holders of Shares may only deal in their Shares through trading on the SGX-ST. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.\nDiversification does not ensure a profit or guarantee against loss.\nFrequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.\nThe information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.\nThis advertisement or publication is intended solely for audiences in Singapore and has not been reviewed by the Monetary Authority of Singapore.\nFor more risk information, please visit statestreet.com/im/sg\n\n\n[1] Source: Bloomberg Finance L.P., as of 31 March 2026","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.0","shortVersion":"4.42.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2630170310","isCrawlerRequest":true}