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One BlackRock exchange-traded fund accounted for almost three-quarters of the net inflow to all ETFs listed on the Singapore Stock Exchange last year, as assets in ETFs listed on the Singapore exchange rose 47 percent to S $ 12.55 billion ( $ 9.24 billion).
The US-based mutual fund giant’s iShares USD Asia High Yield Bond ETF represents S $ 2.94 billion from last year’s total net ETF inflow of S $ 4.04 billion into the city-state, according to data from the Singapore Stock Exchange.
The inflow came despite the fact that the iShares ETF, launched in 2011, suffered negative returns of 12.95 percent in US dollar terms over the year.
The next most attractive fund in terms of inflows was the ICBC CSOP FTSE Chinese Government Bond ETF, which attracted S $ 316 million in new money.
The CSOP ETF, launched in September last year, has rapidly biggest ETF lives in the city-state and just over a month after its inception raised more than $ 1 billion in assets under management.
Third place is the stock-focused Lion-OCBC Securities Hang Seng Tech ETF, which raised $ 294 million.
The number of Singapore-listed ETFs has risen from 30 to 35, with 22 of them seeing their assets under management increase by 2021, according to SGX.
SGX said there is a greater interest from institutional investors in Asian fixed-income strategies, especially in local high-yield bonds and renminbi-denominated Chinese government debt.
Four of the five SGX-listed ETFs that follow real estate investment trust indices were among the top 10 local ETFs for inflows.
Last year’s rise in ETF assets follows 2020s 57 percent jump, when the coronavirus pandemic drove more investors to online platforms.
ETF assets represent almost 10 percent of all mutual fund assets in Singapore.
* Ignites Asia is a news service provided by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at ignitesasia.com.