To The Moon

Macquarie is pleased to announce this morning's newly listed call and put warrants tracking the SGX-listed ETF underlyings of Amova ETI, SPDR Gold and Lion-Phillip SREITs!

You can see how the warrants move alongside the bid and offer prices of the ETF underlyings in their respective Live Matrices:

✳Amova STI ETF call warrant OUKW: https://warrants.com.sg/tools/livematrix/OUKW

✳SPDR Gold ETF call warrant EXQW: https://warrants.com.sg/tools/livematrix/EXQW

✴SPDR Gold ETF put warrant SQGW: https://warrants.com.sg/tools/livematrix/SQGW

✳Lion-Phillip SREITS ETF call warrant JHFW: https://warrants.com.sg/tools/livematrix/JHFW

The warrants are priced between SGD 0.030 to SGD 0.080 (as of 9AM this morning), and will move between 4.6 times to 9.7 times more than these popular ETF underlyings, providing a magnified exposure without the risk of margin calls, while requiring a smaller outlay compared to the ETFs

Here's a quick summary of the latest buzz surrounding the respective ETF underlyings which are amongst the top ETFs listed in Singapore, according to Beansprout:

1⃣SPDR Gold ETF (USD) $GLD US$(O87.SI)$ : aiming to reflect the performance of gold bullion, this SGX-listed SPDR Gold ETF traded to a high of USD 514 on 29 Jan this year, but has pulled back 29% to consolidate around the USD 360 to 380 price levels over the past month

On 7 July, Bloomberg reported that gold's three-year bull run has ended, with nearly USD18 billion pulled from ETFs since prices peaked in January

However, on 15 July, Bloomberg reported that ETFs added 69,030 troy ouches of gold, suggesting that some long-term buyers may be returning at current levels

The escalation of US-Iran tensions and rise in oil prices have added to near-term pressure of gold ETFs as markets priced in higher inflation and potential Fed rate hikes

2⃣Amova STI ETF (SGD)$Amova STI ETF S$D(G3B.SI)$ : a standout performer amongst the three ETFs with year-to-date gains of 16.7% and new record highs of $5.693 achieved on 15 July, the ETF aims to replicate the performance of the Straits Times Index (STI)

The STI has benefited from a flight to safety following the outbreak of the US-Iran-Israel war in late Feb (Bloomberg), while strong institutional inflows into Singapore banks ahead of the second quarter earnings season have helped the index to its new record highs this week (MT Newswires)

Some analysts such as Macquarie Research has recently upgraded their target price on the STI.

3⃣Lion-Phillip SREIT ETF (SGD) $LION-PHILLIP S-REIT(CLR.SI)$ : down 4% year to date, the ETF aims to track the performance of Morningstar Singapore REIT Yield Index PR SGD and invests in S-REITs such as CICT, Keppel DC REIT, Mapletree Logistics Trust etc

According to Bloomberg, analyst sentiment on S-REITs remains broadly constructive, with domestic-focused names preferred for their earnings visibility and balance sheet resilience, though further upside may depend on the trajectory of global interest rates and continued deal activity

REITS generally have an inverse relationship with interest rates, with falling rates reducing borrowing costs and boosting REIT valuations, and vice versa