SGX Unveils Flagship iEdge Singapore Next 50 Liquidity-Weighted Index: REITs Account for Over 42 %, Zeroing-in on Singapore’s Mid-Cap + High-Liquidity Core Assets
22 September 2025 – Singapore Exchange (SGX) officially listed the iEdge Singapore Next 50 Liquidity Weighted Index (“Next 50 Liquidity Index”). Going beyond traditional market-cap weighting, the benchmark is the first SGX flagship to blend “mid-cap” and “high-liquidity” factors in a single gauge, giving investors a one-click gateway to Singapore’s “second-tier” leaders with an explicit tilt toward trading turnover.
1.Index concept: skip the giants, chase the turnover kings
The index removes the 30 largest main-board stocks, then liquidity-weights names ranked 31-80 by 12-month traded value. As of listing day it contains 50 constituents with an aggregate market cap of ~S$42.25 bn; more than 90 % rank within SGX’s top 100 by average daily turnover.
Data source: SGX.com
Data source: SGX.com
Data source: SGX.com
2.REITs weight >42 % – a natural high-yield, defensive core
Latest composition shows REITs at 42.77 %, far above the ~20 % typical of broad benchmarks.
Data source: SGX.com
Top-10 REIT exposures:
$CapLand Ascott T(HMN.SI)$ (4.0 %)
$KEPPEL REIT(K71U.SI)$ (4.9 %)
$Suntec Reit(T82U.SI)$ (4.0 %)
$ParkwayLife Reit(C2PU.SI)$ (3.4 %)
High REIT allocation delivers:
a) Cash yield – trailing 12-month dividend yield 5.44 %, ~330 bp above 10-yr Singapore government bond yield;
b) Defensive correlation – 10-yr correlation with the broad market only 0.65, providing a buffer in volatile spells.
3.Sectors & geography: property yield as anchor, diversified growth on top
Beyond REITs the index keeps:
Financials 11.2 % ( $YZJ Fin Hldg(YF8.SI)$ , $IFAST(AIY.SI)$ , $UOB Kay Hian(U10.SI)$ )
Industrials 8.6 % ( $ComfortDelGro(C52.SI)$ , $SingPost(S08.SI)$ )
Technology 6.1 % ( $UMS(558.SI)$ , $Frencken(E28.SI)$ , $Aztech Gbl(8AZ.SI)$ )
Consumer staples 3.4 % ( $Sheng Siong(OV8.SI)$ , $Olam Group(VC2.SI)$ )
Revenue sourcing:
53.5 % Singapore, 11.2 % China, 6.4 % Australia, ~20 % combined from India, UK, US, etc., offering investors “SGX-listed, globally-earning” diversification.
4.Back-test: high dividends + lower drawdown, superior Sharpe
Base date 23 June 2014, base value 1 000. To end-Aug 2025:
10-yr total-return (TR) CAGR 5.26 %, ~1.1 pp ahead of the FTSE STI;
10-yr max drawdown –27.4 % vs STI’s –34.7 %;
10-yr Sharpe ratio 0.20 vs STI’s 0.12.
Recent performance even stronger: YTD TR 20.4 %, 1-yr ann. 22.4 %. With rates peaking and Asian REITs re-rating, the index’s heavy REIT tilt has been an early beneficiary.
Data source: SGX.com
Data source: SGX.com
5.Access: ETFs, structured products, OTC swaps launching in tandem
On debut three issuers (Phillip Capital, ICBC CSOP, Nikko AM) have filed for licences; products expected 4Q:
Phillip SGX Next 50 Liquidity REITs ETF (provisional), fee 0.35 %, quarterly pay-out;
CSOP iEdge Next 50 2× Daily Leveraged & –1× Inverse ETPs for leverage/hedge;
Several private banks to offer total-return swaps, S$1 mn notional, customisable currency (SGD/USD/HKD) and dividend treatment.
6.Who is it for?
Income seekers: index yield >5 %, above most regional benchmarks;
“REITs + growth” blends: 42 % high-yield REITs cushioned by tech & consumer alpha;
Trading styles: liquidity weighting lifts turnover; intraday volatility averages 18 % above STI, suitable for swing trades.
7.Risk reminders
Rate risk – if the Fed resumes hikes, REIT valuations may compress;
Concentration risk – high REIT weight magnifies impact from sector policy or tax changes;
Mid-cap trait – median market cap only S$2.1 bn; although liquid, bid-ask spreads may widen in extreme conditions.
8.Outlook
With Singapore’s “Asia REIT Hub 2.0” push and SGX’s recent trading-fee cut for REITs, the Next 50 Liquidity Index is poised to attract global income funds. From 2026 SGX may allow dual-currency (SGD + USD) trading for REITs, directly benefiting the index’s many cross-border REITs.
For investors wanting “one ticket, both high yield and growth”, the iEdge Singapore Next 50 Liquidity Weighted Index could become an indispensable core companion to the STI in the Singapore market.
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