To The Moon

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 %) $CapLand India T(CY6U.SI)$ (2 %) $NTT DC REIT USD(NTDU.SI)$ $ESR REIT(9A4U.SI)$ , $Lendlease Reit(JYEU.SI)$ , etc. 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. For whom haven't open CBA can know more from below: 🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly! Find out more here： 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉 🎉The Cash Boost “Daily Draws” is Now Live – Come Join the Fun! Your first trade of the day = 1 lucky draw chance! Cash Boost Account Supports CPF/SRS Linking, Enjoy 0 Custody Fees and 0 Commission*! 💰CBA Mini Course 1: What is Cash Boost Account(CBA)?