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SGX

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.

Index Information

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.

Sector Breakdown

As of latest index rebalance on Sep 2019

 

REIT Type

No. of Constituents

Weight (%)

Industrial REITs

5

32.82%

Retail REITs

6

25.87%

Office REITs

3

16.86%

Diversified REITs

2

13.54%

Specialized REITs

1

4.74%

Residential REITs

1

3.48%

Hotel & Resort REITs

1

1.36%

Health Care REITs

1

1.34%

Major Constituents

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

Index Information

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.

Sector Breakdown

As of latest index rebalance on Sep 2019

 

Sector

No. of Constituents

Weight (%)

Communication Services

16

58.87%

Consumer Discretionary

8

32.52%

Information Technology

6

8.62%

Major Constituents

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

Index Information

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

Sector Breakdown

As of latest index rebalance on Sep 2019

 

Sector

No. of Constituents

Weight (%)

Real Estate

4

32.18%

Industrials

30

32.05%

Consumer Staples

12

12.34%

Financials

3

11.36%

Consumer Discretionary

7

7.80%

Communication Services

3

3.54%

Health Care

1

0.54%

Materials

1

0.10%

Utilities

2

0.08%

Information Technology

1

0.02%

Major Constituents

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