Looking for an easy way to invest in Singapore? The Best ETF Singapore options allow you to grow your wealth with low costs and diversified exposure.
What Is an ETF?
An Exchange-Traded Fund (ETF) is a basket of securities like stocks or bonds that you can buy and sell on the Singapore Exchange (SGX). It gives you exposure to multiple companies or sectors in one single investment, making it popular among both beginners and experienced investors.
Why Invest in ETFs in Singapore?
- Diversification – Reduce risks by investing in a wide range of companies.
- Low Cost – ETFs usually have lower fees compared to unit trusts.
- Liquidity – Easy to buy and sell on SGX anytime during market hours.
- Transparency – ETFs track well-known indexes, so you always know what you’re investing in.
- Long-Term Growth – Great for retirement planning and wealth accumulation.
Popular ETFs in Singapore
- Straits Times Index ETF (STI ETF) – Tracks the performance of the top 30 Singapore companies like DBS, OCBC, and Singtel.
- Nikko AM Singapore STI ETF – Another version of the STI ETF with strong liquidity.
- ABF Singapore Bond Index Fund – A good choice for conservative investors who prefer bonds.
- Lion-OCBC Securities Hang Seng TECH ETF – Exposure to major Chinese tech companies.
- S&P 500 ETF (via SGX-listed options) – Allows Singapore investors to tap into the US stock market.
How to Start Investing in ETFs in Singapore
- Open a brokerage account (DBS Vickers, FSMOne, Tiger Brokers, Saxo, etc.).
- Decide whether you want local or global exposure.
- Buy ETFs directly on SGX or via regular savings plans (RSP).
- Hold long-term for compounding growth.
ETF vs Other Investments
- Stocks – Higher risk with single companies, ETFs spread the risk.
- Unit Trusts – Higher fees compared to ETFs.
- Fixed Deposits – Safe but lower returns than ETFs.
Best Strategy for ETF Investors in Singapore
- Start with broad-based ETFs like the STI ETF.
- Use dollar-cost averaging to invest regularly.
- Consider both equity and bond ETFs for balance.
- Hold long-term to enjoy compounding returns.
Conclusion
The Best ETFs in Singapore give investors a smart, affordable, and low-risk way to grow wealth. Whether you’re new to investing or a seasoned trader, ETFs should be part of your portfolio.
