To The Moon

As of January 2026, total assets under management (AUM) of Singapore-listed ETFs have surpassed SGD 18 billion, while average daily turnover (ADT) surged 69% year-on-year, reaching a new all-time high.

Several products have stood out:

• $XT MS SING US$(O9A.SI)$ delivered a 25% return over the past 12 months in SGD terms, outperforming major global benchmark indices.

• Even ETFs tracking China assets have gained traction. The $CSOP CS A500 ETF S$(SUN.SI)$ successfully listed on SGX on January 20 and ranked among the top three ETFs in Singapore by size on its first trading day, highlighting sustained capital interest in core Asian assets.

• More importantly, fund flows tell a compelling story: Singapore equity ETFs have recorded net inflows for 11 consecutive months.

This “real money” vote suggests that both local and regional investors are reassessing the role of Singapore assets within their portfolios.

I. Scale and Fund Flows: Not Just Growth, but Broad-Based Expansion

According to SGX’s ETF Highlights – Singapore in Focus, Jan 2026, by early 2026 the Singapore ETF market had reached approximately SGD 18 billion in AUM, representing nearly 37% year-on-year growth.

Driven jointly by equities, REITs, and fixed income products, Singapore ETFs are evolving from being “small and steady” to “stable with flexibility.” Some equity ETFs posted returns close to or even exceeding 30% over the past 12 months.

👉 This growth has not been fueled by a single theme, but by multiple asset classes rising together:

• Equity ETFs remain the largest segment, with AUM of around SGD 8 billion

• Gold ETFs total about SGD 4.2 billion, serving as hedges in volatile markets

• Fixed income ETFs stand at roughly SGD 4.1 billion, playing a defensive role amid interest rate changes

• REIT ETFs total around SGD 1.7 billion, with notable inflows returning in the second half of 2025

Among them, REIT ETFs have reached record-high AUM, reflecting that as interest rate expectations stabilize, Singapore ETFs are no longer just synonymous with “buying bank stocks for dividends,” but are increasingly forming a portfolio-friendly, rotational, and long-term investable ecosystem.

II. The Real Underlying Assets of Singapore ETFs

If you break down the constituents of Singapore ETFs, their underlying structure is actually quite straightforward.

• Financials are the absolute core. Major holdings include $DBS(D05.SI)$ , $OCBC Bank(O39.SI)$ , and $UOB(U11.SI)$ . This makes Singapore ETFs highly sensitive to the interest rate environment, credit cycles, and regional economic activity—also explaining their relative resilience during periods of high interest rates.

• REITs and infrastructure form a stable foundation. These include CapitaLand and Mapletree REITs $CapitaLandInvest(9CI.SI)$ $Mapletree Ind Tr(ME8U.SI)$ , as well as assets tied to data centers, logistics, and utilities. They emphasize predictable cash flows rather than high-growth narratives.

• Yet they are not purely defensive. Constituents such as $Sea Ltd(SE)$ and $Grab Holdings(GRAB)$ —listed overseas but closely linked to Southeast Asia’s consumer and tech ecosystems—add a degree of growth optionality to the portfolio.

Overall, Singapore ETFs resemble a hybrid portfolio anchored in financials and the real economy, complemented by regional growth companies. They do not aim for extreme upside, but instead strike a relatively balanced position across dividends, stability, and regional exposure. Holding Singapore ETFs is less about betting on explosive gains, and more about steady, risk-adjusted returns.

III. A Key Change: SGD Trading Counters Lower the Entry Barrier

In January 2026, the Singapore market saw a change that may seem minor, but is highly relevant for long-term investors: several core Singapore ETFs introduced SGD-denominated trading counters.

Why does this matter?

For many investors, the real difference in experience lies not in the index itself, but in:

• Whether frequent currency conversion is required

• Whether FX volatility masks underlying investment returns

• Whether long-term dollar-cost averaging feels smooth and intuitive

At its core, the introduction of SGD trading counters means:

👉 Buying Singapore assets feels more like investing locally, rather than executing a cross-border transaction.

This change may not be immediately reflected in prices, but over time it can meaningfully influence holding behavior and participation levels.

IV. Where Do Singapore ETFs Fit in a Portfolio as of Early 2026?

From an asset allocation perspective, Singapore ETFs are better viewed as:

• A stabilizer (bank stocks + REITs + dividends)

• A regional diversification tool (reducing reliance on a single market)

• A moderate beneficiary of the interest rate cycle

They may not be the first choice for aggressive positioning, but in a global environment characterized by high valuations and elevated volatility, their relevance is steadily increasing.

V. Questions for you

• 💬 Do you currently hold Singapore ETFs in your portfolio? Is your primary motivation dividends, diversification, or currency matching?

• 💬 Among equity, REIT, and bond ETFs in Singapore, which category do you favor most for 2026—and why?

• 💬 In your view, are Singapore ETFs more suitable as a long-term core holding, or as a tactical allocation tool?

Feel free to share your thoughts in the comments.

Risk Disclaimer: The above content is for information sharing and educational purposes only and does not constitute investment advice. ETF prices are subject to market fluctuations, and past performance is not indicative of future results.

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