To The Moon

The Next Level of Growth: Unpacking Singapore's Next 50 Index

A shift is underway on the Singapore Exchange (SGX) as investors look beyond the established giants towards the iEdge Singapore Next 50 Index.

A Liquid Gateway to Mid-Cap Opportunities

Officially launched on September 22, 2025, the iEdge Singapore Next 50 Index (NTR) selects 50 stocks ranked 31st to 80th by market capitalization, excluding the top 30. It is SGX's first flagship index to explicitly combine "Mid-Cap" and "High Liquidity" factors.

A key feature is its exceptional liquidity profile: over 90% of its constituents rank within the top 100 on SGX by average daily turnover. This allows investors to tap into the growth potential of mid-sized companies without significant liquidity concerns. The index employs a transparent, rules-based methodology focused on free-float market capitalization and liquidity to ensure a balanced and tradable portfolio.

The Next 50 Index has generally outperformed the Straits Times Index (STI) for most periods since its inception. This trend of outperformance has continued since the start of this year, fueled by growing investor enthusiasm. A key driver is the Next 50's significant allocation to REITs, which have themselves outpaced the broader market since the beginning of the year.

Sector Characteristics: A REITs-Led, High-Yield Portfolio

The most notable feature of the iEdge Singapore Next 50 Index is the dominant 47.74% weighting in S-REITs. This proportion is significantly higher than the approximately 16% level typical in traditional broad-market indices, shaping the index's dual characteristics of "high dividend yield" and "defensiveness."

The high REITs weighting contributes significantly to yield. The index's latest 12-month dividend yield stands at a high 5.44%, roughly 330 basis points above the yield on the 10-year Singapore government bond at the same time. For income-oriented investors, this yield is particularly attractive in today's low-interest-rate environment.

Beyond REITs, the index's sector distribution is diversified: Financials account for 14%, Industrials 12%, Technology 3%, and Consumer 1%. Geographically, 53.1% of revenue is derived from Singapore itself, with China contributing 10.2%, Australia 8.5%, and India, the US, and others collectively accounting for nearly 20%. This truly achieves a diversified exposure of "listed on SGX, earning globally."

The index has another key feature: each constituent stock is capped at a maximum weight of 5% to maintain better diversification. This stands in contrast to the Straits Times Index (STI), where a small number of stocks carry disproportionately high weights, making the index more susceptible to their individual performance.

The following four stocks have currently reached the 5% weight limit, drawing significant investor attention:

Yangzijiang Financial Holding $YZJ Fin Hldg(YF8.SI)$  

Yangzijiang Financial Holding Ltd. $YZJ Fin Hldg (YF8.SG)$ rose over 165% in 2025. Yangzijiang Financial Holding is an investment management company headquartered in Singapore . Founded in 2021, the company primarily engages in seeking capital appreciation and investment income. Its main business activities include micro-financing, debt investments measured at amortized cost, fund management, and other investments . The group operates as a single business segment across two geographical locations: Singapore and China . Revenue is generated through these diversified investment activities, which involve allocating funds to both listed and private companies.

CapitaLand Ascott Trust $CapLand Ascott T(HMN.SI)$  

$CapLand Ascott T (HMN.SG)$ is a hospitality trust listed in 2005, with its office in Singapore . It specializes in serviced residences, hotels, rental housing, and student accommodation . As of December 31, 2023, CLAS boasts a significant portfolio valued at S$8.7 billion, comprising 106 properties with over 19,000 units across 45 cities in 16 countries . Its key markets include the United States, France, Japan, Singapore, the UK, Vietnam, China, and Australia . The trust generates revenue from the operation of its global hospitality properties. HMN has gained over 15.6% since the beginning of the year.

Keppel REIT $KEPPEL REIT(K71U.SI)$  

$Keppel Reit (K71U.SG)$ is one of Asia's leading real estate investment trusts (REITs) listed on the Singapore Exchange with a portfolio of prime commercial assets in Asia Pacific's key business districts. As at 31 December 2024, Keppel REIT had a total portfolio value of approximately $9.5 billion, comprising properties in Singapore, the key Australian cities of Sydney, Melbourne and Perth, Seoul, South Korea, as well as Tokyo, Japan. Since the beginning of the year, Keppel REIT has seen an increase of over 31%.

NetLink NBN Trust $NetLink NBN Tr (CJLU.SG)$

$NetLink NBN Tr (CJLU.SG)$, established in 2017, owns and operates the foundational passive fibre network infrastructure for Singapore's Nationwide Broadband Network (NBN). As the sole nationwide provider, it offers open, wholesale access to its fibre network, enabling telecom operators to deliver services without the burden of high fixed costs. This government-led initiative is designed to boost economic competitiveness through universal ultra-high-speed broadband. NetLink NBN Trust has risen over 15% since the start of the year.

Broad-Based Momentum

The index's appeal extends beyond its heaviest-weighted stocks. Improved liquidity has energized many constituents, with numerous components seeing a dramatic surge in Average Daily Turnover (ADT). For instance, Hong Leong Asia witnessed a 16-fold increase in ADT alongside a 51% share price gain in the second half of 2025 alone.

SGX's Next 50: Primed for Growth

Looking ahead, the index is well-positioned to benefit from several tailwinds: The Singapore government's "Asia REITs Hub 2.0" initiative and SGX's reduced trading fees for REITs are likely to sustain global investor interest. Furthermore, the potential approval for REITs to trade in dual currencies (SGD and USD) in 2026 would directly benefit several cross-border REITs within the index.

"The launch of the iEdge Singapore Next 50 Indices underscores our goal to cultivate a richer and more inclusive market environment," said Ng Yao Loong, Head of Equities at SGX Group. "By broadening the spotlight to include the next tier of companies, we enable investors to more effectively tap into the full breadth of opportunities available on SGX."

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