Singapore Exchange Group (SGX), established in 1999, is a key multi-asset trading platform within the Southeast Asian capital market ecosystem. Through its index services arm, SGX Index Edge, the exchange engages in index development, calculation, and collaboration, supporting a wide range of products including equities, ETFs, derivatives, and thematic indices. The Straits Times Index (STI) serves as a key benchmark for investment evaluation and product design.
In December 2021, Shenzhen Stock Exchange and SGX signed a memorandum of understanding to launch ETF market connectivity and formally initiate cross-border collaboration in indices and ETFs. In 2022, the two exchanges facilitated the dual listing of multiple ETF products on both markets, covering themes such as innovation and growth, regional development, and the low-carbon economy, further expanding the product linkage framework between the Chinese and Singaporean capital markets.
Since the global financial crisis, yields have plummeted across the developed world due to quantitative easing policies adopted by global central banks. Singapore REITs offer an attractive opportunity in terms of providing exposure to a developed market asset class with a high dividend yield. REITs, as an asset class, also differs markedly from other common equities as they have lower volatility and better Sharpe ratio, resulting in additional diversification benefits.
The iEdge S-REIT 20 Index aims to measure the performance of the 20 largest and most tradable Real Estate Investment Trusts (REITs) listed in Singapore. The Index has a basket size of 20 stocks and is free float market capitalization weighted with a 10% stock cap on each individual index constituent.
As of latest index rebalance on Sep 2019
Company |
Symbol |
REIT Type |
Ascendas Real Estate Investment Trust |
A17U |
Industrial REITs |
CapitaLand Mall Trust |
C38U |
Retail REITs |
CapitaLand Commercial Trust |
C61U |
Office REITs |
Mapletree Commercial Trust |
N2IU |
Retail REITs |
Mapletree Logistics Trust |
M44U |
Industrial REITs |
Suntec Real Estate Investment Trust |
T82U |
Diversified REITs |
Mapletree Industrial Trust |
ME8U |
Industrial REITs |
Mapletree North Asia Commercial Trust |
RW0U |
Diversified REITs |
Keppel REIT |
K71U |
Office REITs |
Keppel DC REIT |
AJBU |
Specialized REITs |
Technology adoption does not follow a linear curve. We are at an early stage of the curve in terms of wider adoption of Internet and Digital technologies with the industries like Artificial Intelligence, Internet of Things, Autonomous Vehicles and Financial Technologies, have just started to disrupt the traditional markets. Technology companies are also reasonably valued (trading at 1.06 P/E Ratio vs 2.1x during 2000) with a very strong balance sheet (24% of assets are in Cash and Cash Equivalents).
The iEdge-Factset Global Internet Index aims to track the performance of developed market securities in the internet technologies segments. The Index has a basket size of 30 stocks and is free float market capitalization weighted with a 10% stock cap on each individual index constituent.
As of latest index rebalance on Sep 2019
Company |
Symbol |
Sector |
Alphabet Inc - CL A |
GOOGL |
Communication Services |
Tencent Holdings Limited |
700 |
Communication Services |
Amazon.com Inc |
AMZN |
Consumer Discretionary |
Facebook Inc |
FB |
Communication Services |
Alibaba Group Holding Ltd |
BABA |
Consumer Discretionary |
Netflix Inc |
NFLX |
Communication Services |
NetEase Inc |
NTES |
Communication Services |
JD.com Inc |
JD |
Consumer Discretionary |
eBay Inc |
EBAY |
Consumer Discretionary |
Shopify Inc |
SHOP |
Information Technology |
In January 2004, the UN Secretary-General Kofi Annan wrote to CEOs of financial institutions to take part in the initiative to integrate ESG investing into global capital markets.
Since then, ESG has become the fastest-growing smart beta strategy showing a significant growth in AUM.
The iEdge SG ESG Leaders index aims to track the performance of SGX stocks that meet minimum Environmental, Social and Governance (ESG) criteria by Sustainalytics* and are considered best-in-class from a Sustainability perspective
As of latest index rebalance on Sep 2019
Company |
Symbol |
Sector |
DBS Group Holdings Ltd |
D05 |
Financials |
United Overseas Bank Limited |
U11 |
Financials |
Singapore Telecommunications Limited |
Z74 |
Communication Services |
CapitaLand Limited |
C31 |
Real Estate |
Keppel Corporation Limited |
BN4 |
Industrials |
Thai Beverage PCL |
Y92 |
Consumer Staples |
Ascendas Real Estate Investment Trust |
A17U |
Real Estate |
Singapore Exchange Limited |
S68 |
Financials |
Wilmar International Limited |
F34 |
Consumer Staples |
CapitaLand Mall Trust |
C38U |
Real Estate |