Which ETFs in Singapore Offer the Best Returns?
Singapore is one of the best markets in the world right now when it comes to business and investing. People all over the world are coming to this city-state, ready to invest their money, hoping to get a good return out of it and see strong profits. One very popular investment option in Singapore is ETFs, with investors betting on ETFs more than ever in 2018. We will review the ETFs of Singapore that had the best return in 2018. If you’ve just started making investments, you will soon know which ETF Singapore to choose to make a good profit.
If you don’t know what Singapore ETF is, there is a widely-used definition that is very easy to understand: ETF is a listed fund used to seek and track a holding and the return of investments such as stocks (in a particular sector, in country indexes), commodities, bonds and other widely used financial instruments.
As an investor, you can find various ETFs on multiple markets, but one of the most popular markets for ETFs is Singapore. So which are the Singapore ETFs that offer the best returns at the end of 2018?
1. ABF Singapore Bond Index Fund
If you are an investor looking for a profitable ETF, you should definitely look into ABF Singapore Bond Index Fund. This is the kind of ETF that invests in bonds and will make it easy for you to gain access to quasi-government bonds and highly-rated government bonds.
This is an ETF in Singapore that offers good returns now at the end of 2018 and by investing in this ETF, you will automatically gain access to bonds issued by the government in Singapore and also by the LTA (Land Transport Authority), SP Power, Temasek or HDB (Housing & Development Board). Plus, you may even gain access to some bonds linked to the Korean government. This is truly an ETF to invest in at the end of 2018 if you are looking to turn a profit.
2. SPDR / Nikko AM Singapore STI ETF
Another ETF recommended for you in Singapore if you are looking for rapid returns is SPDR or Nikko AM Singapore ETF. This ETF is linked to a country index, which means it is a trustworthy, popular ETF that invests in the most liquid and solid companies in the country. In fact, these two different ETFs track the same STI (Straits Times Index) of the company that invested in multiple stocks. Although it sounds complicated, it’s in fact very simple. With the help of a financial advisor to break it down for you, you could get started with this investment right away.
3. Lion – Phillip S-REIT ETF
The third recommendation is an ETF based on a REIT (Real Estate Investment Trust) that has become the focus of investors since REITs are becoming increasingly popular alternatives to investing in actual properties. This is a great opportunity for any investor as it is an ETF that is purely invested in local REITs in Singapore in comparison to other REIT ETFs here which include international REITs from countries like Malaysia, Australia, China or Hong Kong.
This REIT ETF currently invests in 23 REITs in Singapore, such as Suntec REIT, CapitaLand Mall Trust, Mapletree Commercial Trust, Ascendas REIT, Keppel REIT, CapitaLand Commercial Trust, etc.
4. SPDR S&P 500 ETF
Another option for an investor in Singapore is the SPDR S&P 500 ETF. As you’d expect, this ETF is listed on the S&P 500 index which is considered to be a country index. For an investor, this is an easy way to diversify your investment portfolio across multiple countries that have up to 500 companies listed in the United States. Through this ETF you can invest in some of the largest companies worldwide, such as Microsoft, Facebook, Apple, Amazon, JP Morgan, Alphabet, Exxon Mobil, Johnson & Johnson and many others. This is definitely a wonderful opportunity for any Singaporean investor.
5. SPDR Gold Shares ETF
Next on the list is SPDR Gold Shares ETF. As the name suggests, this ETF invests in gold. This is one of those commodities that has always been seen as a good store of value and also a popular asset class for investors. For an investor in Singapore, investing in the SPDR Gold Shares ETF is a good way to get exposure to gold, without going through the hassle of buying gold and storing it.
What Common Advantages You Can Get With These ETFs And Others?
One of the assets many investors are looking for, diversification is a direct benefit of investing in ETFs. For example, a purchase of the STI ETF makes you an investor in 30 of the largest, most liquid companies in Singapore. This is an easy way to expand your portfolio and try numerous industries with little effort.
2. The Earning Of Market Returns
The decision to invest in ETFs is the decision to receive market returns for those assets, regardless of what kind of investment you are holding (bonds, stocks or commodities). Diversifying your portfolio with ETFs means you will receive the average return of assets you currently own. This does not exclude risk entirely, but it does mean you will face an average risk of the entire sector or even the entire market.
When deciding to invest in ETFs, we should also take into consideration the efficient costs of this type of investment. Compared to unit trusts or mutual funds, ETFs have a lower management fee which means that in the long run ETFs are more affordable. There is much similarity between buying ETFs and buying stocks on the exchange. ETFs are good options for investors who want to pool their money to buy assets together.
ETFs are great investment opportunities for business people in Singapore and these ETFs listed above have shown the best returns at the end of 2018. Start investing in any of these to see your revenues grow.
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