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1. Shard Calculation

Query:

Response:

Calculated Shard: 153 (from laksa135)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa153.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.sc.com/sg/wealth/insights/etf-investing-and-what-you-need-to-know/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.sc.com/sg/wealth/insights/etf-investing-and-what-you-need-to-know/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/","crawl_time":1776401584,"first_indexed_time":1611711260,"http_code":200,"src_unparsed":"com,sc!www,\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/ s443","src_root_hash":"14875485638662795753","history_drop_reason":null,"meta_title":"ETFS: WHAT ARE THEY AND HOW DO YOU INVEST IN THEM? – Standard Chartered Singapore","meta_descriptions":["An exchange-traded fund is a type of investment fund that is listed on a stock exchange."],"attrs_boilerpipe_text":"WHAT IS AN ETF?\nAn exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. \nSGX\n).\nETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market.\nWHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING?\nAs ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees.\nIt should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of $8-$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: \nSGX\n)\nReturns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile.\nSome ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024.\nSource: SGX\nEXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE\nThe ETFs listed on the SGX can be broadly divided into these categories\nEquities\nETFS that track an equity-related index like the Straits Times Index\nBonds\nETFS that track a bond index such as ABF Singapore Bond Index\nCommodities\nETFS that track a commodities index\nOnly one commodities ETF in Singapore which tracks the gold spot price\nREITs\nETFS that track various Asian and Singaporean REIT indexes\nOnly five REIT ETFs currently listed on the SGX\nWHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET?\nETFs are gaining popularity\n in the City-State.\nIn 2023, \ndaily turnover\n for SGX-listed ETFs in 2023 \ncrossed S$13 million\n, according to Singapore stock market data.\nThe data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S$765 million in net inflows.\nThe information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a \nwhopping S$10.6 billion\n.\nSource: SGX\nAccording to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S$2.97 billion and S$6.69 billion respectively in Dec 2023.\nSource: SGX\nWHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING?\nLow Fees\nETFs’ fees can be much lower compared to actively managed unit trusts.\nWithout the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors.\nInstant and Convenient Diversification\nInvesting in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification.\nInvestors will not have to make multiple investments to achieve diversification.\nLess Time\nSince ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities.\nLess time is needed to monitor performance since ETFs are typically held on a long-term horizon\nWHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING?\nPotentially Higher Costs\nAlthough ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks\/ bonds due to management fees.\nPotentially Missing Out on Growth Opportunities\nETFS do not cover the entire range of the market.\nInvestors may miss out on growth opportunities from smaller stocks that are less represented on indices.\nSince ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index.\nLower Dividend Cashflow\nInvesting in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks.\nLack of Control\nLess control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities.\nWHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING?\nMarket Risk\nInvesting in ETFs is investing in the broader market, meaning your investment is still subject to market risk.\nLiquidity Risk\nETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares.\nTracking Risk\n ETF performance may not match the performance of the underlying index perfectly.\nWhile an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error.\nTHE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO\nIf you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option.\nHere are a few key tips when choosing an ETF to invest in.\nKey #1: Know which asset class you want to invest in\n Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best.\nFor example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk.\nKey #2: Aim for the lowest fees and expense ratios\nEven a small difference in fees can make a big difference over the long-term.\nSince most ETFs are competitive on share price, choose the one with the lowest costs.\nKey #3: Pay attention to tracking error\nTracking error indicates how closely an ETF is tracking the underlying index.\nTracking error figures should be published on an ETF’s fact sheet or prospectus.\nKey #4: Look at liquidity\nTo mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website.\nETFs have helped bring investing to a whole new generation.\nFor those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon.\nAT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON\nETFs\nStock\nUnit Trust\nDiversification\nYes\nNo\nYes\nPrice Transparency\nYes\nYes\nNo\nDividends\nYes\nYes\nYes\nManagement Fees\nYes\nNo\nYes\nBenefits\nCosts\/ Risk\nETF vs Mutual Fund\nTransparency\nLower Fees and Transaction Cost\nETF vs Stocks\n Diversification\nManagement Fees\nAccessibility\nTracking Error Risk\nHOW TO INVEST IN ETFs\nThe common ways to invest into ETFs include through:\n– Brokerages\n– Online trading platforms\n– Roboadvisors.\nIf you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart \nOnline Trading Platform\n.\nYour feedback is valuable to us. Did you find this article helpful?\nThis article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you.\nYou are fully responsible for your investment decision, including whether the investment is suitable for you. The products\/services involved are not principal-protected and you may lose all or part of your original investment amount.\nStandard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article.\nSingapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.\nThe information stated in this article is accurate as at the date of publication.","attrs_markdown":"- [Personal](https:\/\/www.sc.com\/sg\/ \"Personal Banking\")\n- [Priority](https:\/\/www.sc.com\/sg\/priority\/ \"Priority Banking\")\n- [International](https:\/\/www.sc.com\/sg\/international-banking\/ \"International\")\n- [Business](https:\/\/www.sc.com\/sg\/business\/ \"Business\")\n- [Private](https:\/\/www.sc.com\/en\/wealth-retail-banking\/private-banking\/ \"Private\")\n\n- [Referral Sign Up](https:\/\/www.sc.com\/sg\/promotions\/referral-signup\/ \"Referral Sign Up\")\n- [Search](https:\/\/www.sc.com\/sg\/search\/ \"Search\")\n- [Digital Banking](https:\/\/www.sc.com\/sg\/bank-with-us\/mobile-banking-services\/standard-chartered-mobile\/ \"Digital Banking\")\n\n[Standard Chartered](https:\/\/www.sc.com\/sg\/ \"Standard Chartered\")\n\n- Accounts & Deposits Savings, Fixed Deposits, Remittances\n  Accounts & Deposits\n  \n  [Everyday Use Bonus\\$aver Account Up to **6\\.05 %** p.a interest Choose how your money grows Enjoy up to S\\$188 cashback when you sign up for a Bonus\\$aver Account and a Bonus\\$aver World Mastercard Credit Card\\!](https:\/\/www.sc.com\/sg\/save\/current-accounts\/bonussaver\/ \"Bonus$aver Account\")\n  \n  [Savings e\\$aver Account Earn up to **2\\.50 %** p.a High yield savings account with the flexibility to access your cash at any time.](https:\/\/www.sc.com\/sg\/save\/savings-accounts\/esaver\/ \"e$aver Account\")\n  \n  [Wealth Building Wealth \\$aver Account Up to **4\\.50%** p.a A Priority Banking account to help you grow your wealth Receive welcome gifts of up to **S\\$18,000** in value when you sign up for Priority Banking **\\+1%** Unlimited Cashback on your debit card](https:\/\/www.sc.com\/sg\/save\/current-accounts\/wealth-saver\/ \"Wealth Saver Account\")\n  \n  [Compare accounts and choose the one that best suits your needs View And Compare Accounts](https:\/\/www.sc.com\/sg\/save\/ \"View And Compare Accounts\")\n  \n  Current and Savings\n  \n  - [First\\$aver Account The savings account for youths](https:\/\/www.sc.com\/sg\/save\/savings-accounts\/firstsaver\/ \"First$aver Account \")\n  - [USD\\$aver Account Earn up to 4.50% p.a. interest on your USD deposits with no lock-in period](https:\/\/www.sc.com\/sg\/save\/savings-accounts\/usdsaver\/ \"USD$aver Account\")\n  - [MyWay Savings Account Tailored for 55 years and above with up to 3.50% p.a. interest](https:\/\/www.sc.com\/sg\/save\/savings-accounts\/myway\/ \"MyWay Savings Account\")\n  \n  Time deposits\n  \n  - [SGD Time Deposit Earn high interest on your Singapore Dollar Time Deposit (Fixed Deposit)](https:\/\/www.sc.com\/sg\/save\/time-deposits\/singapore-dollar-time-deposit\/ \"SGD Time Deposit\")\n  - [FCY Time Deposit Earn high interest for your foreign currency](https:\/\/www.sc.com\/sg\/save\/time-deposits\/foreign-currency-time-deposits\/ \"FCY Time Deposit\")\n  ***\n  Services and Useful links\n  \n  - [SC Remit](https:\/\/www.sc.com\/sg\/bank-with-us\/remittance\/ \"SC Remit\")\n  - [Frequently Asked Questions](https:\/\/www.sc.com\/sg\/help\/general-information\/ \"Frequently Asked Questions\")\n  - [eStatement & eAdvices](https:\/\/www.sc.com\/sg\/bank-with-us\/online-banking-services\/online-estatements\/ \"eStatement & eAdvices\")\n  - [Standard Chartered Mobile](https:\/\/www.sc.com\/sg\/bank-with-us\/mobile-banking-services\/standard-chartered-mobile\/ \"Standard Chartered Mobile\")\n  - [Money Lock](https:\/\/www.sc.com\/sg\/bank-with-us\/money-lock\/ \"Money Lock\")\n  \n  [Get up to S\\$188 cashback with Bonus\\$aver Offer valid from 1 March 2025 to 30 April 2025. 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Instant approval and disbursement to bank account of choice Tenures from 1 to 5 years](https:\/\/www.sc.com\/sg\/borrow\/loans\/cashone\/ \"CashOne Personal Loan\")\n  \n  [Interest-Free Credit Card Funds Transfer From **1\\.30 %** processing fees (EIR from 4.14%) Get cash for your financial needs at 0% interest p.a. Instant approval and disbursement to bank account of choice Tenures from 3 to 12 months](https:\/\/www.sc.com\/sg\/borrow\/loans\/balance-transfer\/ \"Credit Card Funds Transfer\")\n  \n  [Cashback Debt Consolidation Plan From **3\\.48 %** p.a (EIR from 6.33% p.a.) 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ETFs: What are they and how do you invest in them?\n\n![svg icon](https:\/\/av.sc.com\/sg\/content\/images\/sg-equities-wealth-desktop.png)![svg icon](https:\/\/av.sc.com\/sg\/content\/images\/sg-equities-wealth-mob.png)\n\nETFS: What are they and how do you invest in them?\n\n[Invest now](https:\/\/www.sc.com\/sg\/wealth\/investment\/online-trading\/)\n\nWealth BuildingStocks, ETFs & Trading\n\n5 March 2025 I 8 mins read\n\n[![Facebook](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-facebook.svg)](https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![LinkedIn](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-linkedin.svg)](https:\/\/www.linkedin.com\/shareArticle?mini=true&url=https:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![Mail](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-email.svg)](mailto:?subject=ETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F&body=Here%20is%20an%20interesting%20piece%20from%20Standard%20Chartered%20Wealth%20Insights%20page%0D%0A%0D%0AETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F%0D%0A%0D%0AAn%20exchange-traded%20fund%20is%20a%20type%20of%20investment%20fund%20that%20is%20listed%20on%20a%20stock%20exchange.%0D%0A%0D%0AMore%20details%20are%20here%0D%0Ahttps:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![Share](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-share.svg)]()\n#### **WHAT IS AN ETF?**\nAn exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. [SGX](https:\/\/www.sgx.com\/securities\/etf-screener)).\n\nETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market.\n\n#### **WHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING?**\nAs ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees.\n\nIt should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of \\$8-\\$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: [SGX](https:\/\/www.sgx.com\/securities-products#ETF))\n\nReturns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile.\n\nSome ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024.\n\n![Text, File](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-one.png)\n\nSource: SGX\n#### **EXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE**\nThe ETFs listed on the SGX can be broadly divided into these categories\n\nEquities\n\n- ETFS that track an equity-related index like the Straits Times Index\n\nBonds\n\n- ETFS that track a bond index such as ABF Singapore Bond Index\n\nCommodities\n\n- ETFS that track a commodities index\n- Only one commodities ETF in Singapore which tracks the gold spot price\n\nREITs\n\n- ETFS that track various Asian and Singaporean REIT indexes\n- Only five REIT ETFs currently listed on the SGX\n#### **WHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET?**\n[ETFs are gaining popularity](https:\/\/api2.sgx.com\/sites\/default\/files\/2024-04\/ETF%20Market%20Highlights%204Q%202023_0.pdf) in the City-State.\n\nIn 2023, *daily turnover* for SGX-listed ETFs in 2023 *crossed S\\$13 million*, according to Singapore stock market data.\n\nThe data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S\\$765 million in net inflows.\n\nThe information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a *whopping S\\$10.6 billion*.\n\n![Bar Chart, Chart](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-two.png)\n\nSource: SGX\n\nAccording to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S\\$2.97 billion and S\\$6.69 billion respectively in Dec 2023.\n\n![Bar Chart, Chart](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-three.png)\n\nSource: SGX\n#### **WHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING?**\nLow Fees\n\n- ETFs’ fees can be much lower compared to actively managed unit trusts.\n- Without the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors.\n\nInstant and Convenient Diversification\n\n- Investing in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification.\n- Investors will not have to make multiple investments to achieve diversification.\n\nLess Time\n\n- Since ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities.\n- Less time is needed to monitor performance since ETFs are typically held on a long-term horizon\n#### **WHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING?**\nPotentially Higher Costs\n\n- Although ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks\/ bonds due to management fees.\n\nPotentially Missing Out on Growth Opportunities\n\n- ETFS do not cover the entire range of the market.\n- Investors may miss out on growth opportunities from smaller stocks that are less represented on indices.\n- Since ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index.\n\nLower Dividend Cashflow\n\n- Investing in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks.\n\nLack of Control\n\n- Less control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities.\n#### **WHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING?**\nMarket Risk\n\nInvesting in ETFs is investing in the broader market, meaning your investment is still subject to market risk.\n\nLiquidity Risk\n\nETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares.\n\nTracking Risk\n\n- ETF performance may not match the performance of the underlying index perfectly.\n- While an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error.\n#### **THE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO**\nIf you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option.\n\nHere are a few key tips when choosing an ETF to invest in.\n\nKey \\#1: Know which asset class you want to invest in\n\n- Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best.\n- For example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk.\n\nKey \\#2: Aim for the lowest fees and expense ratios\n\n- Even a small difference in fees can make a big difference over the long-term.\n- Since most ETFs are competitive on share price, choose the one with the lowest costs.\n\nKey \\#3: Pay attention to tracking error\n\n- Tracking error indicates how closely an ETF is tracking the underlying index.\n- Tracking error figures should be published on an ETF’s fact sheet or prospectus.\n\nKey \\#4: Look at liquidity\n\n- To mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website.\n\nETFs have helped bring investing to a whole new generation.\n\nFor those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon.\n\n#### **AT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON**\n|   |   |   |   |\n|---|---|---|---|\n|   | **ETFs** | **Stock** | **Unit Trust** |\n| **Diversification** | Yes | No | Yes |\n| **Price Transparency** | Yes | Yes | No |\n| **Dividends** | Yes | Yes | Yes |\n| **Management Fees** | Yes | No | Yes |\n\n|   |   |   |\n|---|---|---|\n|   | **Benefits** | **Costs\/ Risk** |\n| **ETF vs Mutual Fund** | Transparency |   |\n|   | Lower Fees and Transaction Cost |   |\n| **ETF vs Stocks** | Diversification | Management Fees |\n|   | Accessibility | Tracking Error Risk |\n#### **HOW TO INVEST IN ETFs**\nThe common ways to invest into ETFs include through:\n\n– Brokerages\n\n– Online trading platforms\n\n– Roboadvisors.\n\nIf you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart [Online Trading Platform](https:\/\/www.sc.com\/sg\/investment\/online-trading\/?aggregator_instance=etf_101_article).\n\nShare this article:\n\n[![Facebook](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-facebook.svg)](https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![LinkedIn](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-linkedin.svg)](https:\/\/www.linkedin.com\/shareArticle?mini=true&url=https:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![Mail](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-email.svg)](mailto:?subject=ETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F&body=Here%20is%20an%20interesting%20piece%20from%20Standard%20Chartered%20Wealth%20Insights%20page%0D%0A%0D%0AETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F%0D%0A%0D%0AAn%20exchange-traded%20fund%20is%20a%20type%20of%20investment%20fund%20that%20is%20listed%20on%20a%20stock%20exchange.%0D%0A%0D%0AMore%20details%20are%20here%0D%0Ahttps:\/\/www.sc.com\/sg\/wealth\/insights\/etf-investing-and-what-you-need-to-know\/)[![Share](https:\/\/av.sc.com\/global\/content\/themes\/scretail\/assets\/global\/icons\/svg\/wealth-insights\/icon-sc-wi-social-share.svg)]()\n\nYour feedback is valuable to us. 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Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.\n\nThe information stated in this article is accurate as at the date of publication.\n\nRelated Articles\n\n[![](https:\/\/av.sc.com\/sg\/content\/images\/241125_StockTradingFundie_Banner-2-768x350-1.png) Basics of Stock TradingBefore you venture deeper into your stock trading journey, this article covers the basics you should know.](https:\/\/www.sc.com\/sg\/wealth\/insights\/basics-of-stock-trading\/)\n\n[![](https:\/\/av.sc.com\/sg\/content\/images\/sg-equity-article-mob.jpg) Equities 101: Beginner’s guide to equity investing in the long runThis beginner-friendly resource breaks down the basics of equity investing.](https:\/\/www.sc.com\/sg\/wealth\/insights\/equities-101\/)\n\n[![](https:\/\/av.sc.com\/sg\/content\/images\/sg-pvb-op-ed-article-master-banner-priced-for-perfection-mobile.jpg) Will history repeat itself in stock markets?In financial markets, there 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Relations](https:\/\/www.sc.com\/sg\/investors\/ \"Investor Relations\")\n- [Global Research](https:\/\/www.standardchartered.com\/en\/learning-resources\/global-research.html \"Global Research\")\n- [News and Media](https:\/\/www.sc.com\/sg\/news-media\/ \"News and Media\")\n- [Awards & Achievements](https:\/\/www.sc.com\/sg\/about-us\/awards-achievements\/ \"Awards & Achievements\")\n- [Careers](https:\/\/www.sc.com\/en\/global-careers\/experienced-hire\/spotlight-career-opportunities\/singapore\/ \"Careers\")\n- [Group Website](https:\/\/www.sc.com\/en\/ \"Group Website\")\n- [Speaking up](https:\/\/wrs.expolink.co.uk\/speakingup \"Speaking up\")\n- [Security Tips](https:\/\/www.sc.com\/global\/security-tips\/ \"Security Tips\")\n- [Protecting our clients](https:\/\/www.sc.com\/sg\/cybersecurity\/ \"Protecting our clients\")\n- [Cookie Policy](https:\/\/www.sc.com\/sg\/cookie-policy\/ \"Cookie Policy\")\n- [Sustainability](https:\/\/www.standardchartered.com\/sustainability\/en\/index.html \"Sustainability\")\n- [Privacy Notice](https:\/\/www.sc.com\/sg\/privacy-notice\/ \"Privacy Notice\")\n- [Terms & Conditions](https:\/\/www.sc.com\/sg\/terms-and-conditions\/ \"Terms & Conditions\")\n- [Deposit Insurance Register](https:\/\/www.sc.com\/sg\/deposit-insurance-register\/ \"Deposit Insurance Register\")","attrs_readable_markdown":"#### **WHAT IS AN ETF?**\nAn exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. [SGX](https:\/\/www.sgx.com\/securities\/etf-screener)).\n\nETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market.\n\n#### **WHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING?**\nAs ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees.\n\nIt should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of \\$8-\\$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: [SGX](https:\/\/www.sgx.com\/securities-products#ETF))\n\nReturns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile.\n\nSome ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024.\n\n![Text, File](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-one.png)\n\nSource: SGX\n#### **EXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE**\nThe ETFs listed on the SGX can be broadly divided into these categories\n\nEquities\n\n- ETFS that track an equity-related index like the Straits Times Index\n\nBonds\n\n- ETFS that track a bond index such as ABF Singapore Bond Index\n\nCommodities\n\n- ETFS that track a commodities index\n- Only one commodities ETF in Singapore which tracks the gold spot price\n\nREITs\n\n- ETFS that track various Asian and Singaporean REIT indexes\n- Only five REIT ETFs currently listed on the SGX\n#### **WHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET?**\n[ETFs are gaining popularity](https:\/\/api2.sgx.com\/sites\/default\/files\/2024-04\/ETF%20Market%20Highlights%204Q%202023_0.pdf) in the City-State.\n\nIn 2023, *daily turnover* for SGX-listed ETFs in 2023 *crossed S\\$13 million*, according to Singapore stock market data.\n\nThe data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S\\$765 million in net inflows.\n\nThe information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a *whopping S\\$10.6 billion*.\n\n![Bar Chart, Chart](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-two.png)\n\nSource: SGX\n\nAccording to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S\\$2.97 billion and S\\$6.69 billion respectively in Dec 2023.\n\n![Bar Chart, Chart](https:\/\/av.sc.com\/sg\/content\/images\/sg-etf-article-picture-three.png)\n\nSource: SGX\n#### **WHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING?**\nLow Fees\n\n- ETFs’ fees can be much lower compared to actively managed unit trusts.\n- Without the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors.\n\nInstant and Convenient Diversification\n\n- Investing in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification.\n- Investors will not have to make multiple investments to achieve diversification.\n\nLess Time\n\n- Since ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities.\n- Less time is needed to monitor performance since ETFs are typically held on a long-term horizon\n#### **WHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING?**\nPotentially Higher Costs\n\n- Although ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks\/ bonds due to management fees.\n\nPotentially Missing Out on Growth Opportunities\n\n- ETFS do not cover the entire range of the market.\n- Investors may miss out on growth opportunities from smaller stocks that are less represented on indices.\n- Since ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index.\n\nLower Dividend Cashflow\n\n- Investing in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks.\n\nLack of Control\n\n- Less control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities.\n#### **WHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING?**\nMarket Risk\n\nInvesting in ETFs is investing in the broader market, meaning your investment is still subject to market risk.\n\nLiquidity Risk\n\nETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares.\n\nTracking Risk\n\n- ETF performance may not match the performance of the underlying index perfectly.\n- While an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error.\n#### **THE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO**\nIf you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option.\n\nHere are a few key tips when choosing an ETF to invest in.\n\nKey \\#1: Know which asset class you want to invest in\n\n- Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best.\n- For example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk.\n\nKey \\#2: Aim for the lowest fees and expense ratios\n\n- Even a small difference in fees can make a big difference over the long-term.\n- Since most ETFs are competitive on share price, choose the one with the lowest costs.\n\nKey \\#3: Pay attention to tracking error\n\n- Tracking error indicates how closely an ETF is tracking the underlying index.\n- Tracking error figures should be published on an ETF’s fact sheet or prospectus.\n\nKey \\#4: Look at liquidity\n\n- To mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website.\n\nETFs have helped bring investing to a whole new generation.\n\nFor those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon.\n\n#### **AT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON**\n|   |   |   |   |\n|---|---|---|---|\n|   | **ETFs** | **Stock** | **Unit Trust** |\n| **Diversification** | Yes | No | Yes |\n| **Price Transparency** | Yes | Yes | No |\n| **Dividends** | Yes | Yes | Yes |\n| **Management Fees** | Yes | No | Yes |\n\n|   |   |   |\n|---|---|---|\n|   | **Benefits** | **Costs\/ Risk** |\n| **ETF vs Mutual Fund** | Transparency |   |\n|   | Lower Fees and Transaction Cost |   |\n| **ETF vs Stocks** | Diversification | Management Fees |\n|   | Accessibility | Tracking Error Risk |\n#### **HOW TO INVEST IN ETFs**\nThe common ways to invest into ETFs include through:\n\n– Brokerages\n\n– Online trading platforms\n\n– Roboadvisors.\n\nIf you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart [Online Trading Platform](https:\/\/www.sc.com\/sg\/investment\/online-trading\/?aggregator_instance=etf_101_article).\n\nYour feedback is valuable to us. Did you find this article helpful?\n\nThis article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you.\n\nYou are fully responsible for your investment decision, including whether the investment is suitable for you. The products\/services involved are not principal-protected and you may lose all or part of your original investment amount.\n\nStandard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article.\n\nSingapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S\\$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.\n\nThe information stated in this article is accurate as at the date of publication.","meta_canonical":null}

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Boilerpipe Text	WHAT IS AN ETF? An exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. SGX ). ETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market. WHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING? As ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees. It should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of $8-$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: SGX ) Returns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile. Some ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024. Source: SGX EXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE The ETFs listed on the SGX can be broadly divided into these categories Equities ETFS that track an equity-related index like the Straits Times Index Bonds ETFS that track a bond index such as ABF Singapore Bond Index Commodities ETFS that track a commodities index Only one commodities ETF in Singapore which tracks the gold spot price REITs ETFS that track various Asian and Singaporean REIT indexes Only five REIT ETFs currently listed on the SGX WHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET? ETFs are gaining popularity in the City-State. In 2023, daily turnover for SGX-listed ETFs in 2023 crossed S$13 million , according to Singapore stock market data. The data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S$765 million in net inflows. The information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a whopping S$10.6 billion . Source: SGX According to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S$2.97 billion and S$6.69 billion respectively in Dec 2023. Source: SGX WHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING? Low Fees ETFs’ fees can be much lower compared to actively managed unit trusts. Without the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors. Instant and Convenient Diversification Investing in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification. Investors will not have to make multiple investments to achieve diversification. Less Time Since ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities. Less time is needed to monitor performance since ETFs are typically held on a long-term horizon WHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING? Potentially Higher Costs Although ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks/ bonds due to management fees. Potentially Missing Out on Growth Opportunities ETFS do not cover the entire range of the market. Investors may miss out on growth opportunities from smaller stocks that are less represented on indices. Since ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index. Lower Dividend Cashflow Investing in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks. Lack of Control Less control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities. WHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING? Market Risk Investing in ETFs is investing in the broader market, meaning your investment is still subject to market risk. Liquidity Risk ETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares. Tracking Risk ETF performance may not match the performance of the underlying index perfectly. While an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error. THE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO If you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option. Here are a few key tips when choosing an ETF to invest in. Key #1: Know which asset class you want to invest in Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best. For example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk. Key #2: Aim for the lowest fees and expense ratios Even a small difference in fees can make a big difference over the long-term. Since most ETFs are competitive on share price, choose the one with the lowest costs. Key #3: Pay attention to tracking error Tracking error indicates how closely an ETF is tracking the underlying index. Tracking error figures should be published on an ETF’s fact sheet or prospectus. Key #4: Look at liquidity To mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website. ETFs have helped bring investing to a whole new generation. For those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon. AT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON ETFs Stock Unit Trust Diversification Yes No Yes Price Transparency Yes Yes No Dividends Yes Yes Yes Management Fees Yes No Yes Benefits Costs/ Risk ETF vs Mutual Fund Transparency Lower Fees and Transaction Cost ETF vs Stocks Diversification Management Fees Accessibility Tracking Error Risk HOW TO INVEST IN ETFs The common ways to invest into ETFs include through: – Brokerages – Online trading platforms – Roboadvisors. If you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart Online Trading Platform . Your feedback is valuable to us. Did you find this article helpful? This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you. You are fully responsible for your investment decision, including whether the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount. Standard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article. Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. The information stated in this article is accurate as at the date of publication.
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ETFs: What are they and how do you invest in them? ![svg icon](https://av.sc.com/sg/content/images/sg-equities-wealth-desktop.png)![svg icon](https://av.sc.com/sg/content/images/sg-equities-wealth-mob.png) ETFS: What are they and how do you invest in them? [Invest now](https://www.sc.com/sg/wealth/investment/online-trading/) Wealth BuildingStocks, ETFs & Trading 5 March 2025 I 8 mins read [![Facebook](https://av.sc.com/global/content/themes/scretail/assets/global/icons/svg/wealth-insights/icon-sc-wi-social-facebook.svg)](https://www.facebook.com/sharer/sharer.php?u=https://www.sc.com/sg/wealth/insights/etf-investing-and-what-you-need-to-know/)[![LinkedIn](https://av.sc.com/global/content/themes/scretail/assets/global/icons/svg/wealth-insights/icon-sc-wi-social-linkedin.svg)](https://www.linkedin.com/shareArticle?mini=true&url=https://www.sc.com/sg/wealth/insights/etf-investing-and-what-you-need-to-know/)[![Mail](https://av.sc.com/global/content/themes/scretail/assets/global/icons/svg/wealth-insights/icon-sc-wi-social-email.svg)](mailto:?subject=ETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F&body=Here%20is%20an%20interesting%20piece%20from%20Standard%20Chartered%20Wealth%20Insights%20page%0D%0A%0D%0AETFs%3A%20What%20are%20they%20and%20how%20do%20you%20invest%20in%20them%3F%0D%0A%0D%0AAn%20exchange-traded%20fund%20is%20a%20type%20of%20investment%20fund%20that%20is%20listed%20on%20a%20stock%20exchange.%0D%0A%0D%0AMore%20details%20are%20here%0D%0Ahttps://www.sc.com/sg/wealth/insights/etf-investing-and-what-you-need-to-know/)[![Share](https://av.sc.com/global/content/themes/scretail/assets/global/icons/svg/wealth-insights/icon-sc-wi-social-share.svg)]() #### WHAT IS AN ETF? An exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. [SGX](https://www.sgx.com/securities/etf-screener)). ETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market. #### WHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING? As ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees. It should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of \$8-\$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: [SGX](https://www.sgx.com/securities-products#ETF)) Returns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile. Some ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024. ![Text, File](https://av.sc.com/sg/content/images/sg-etf-article-picture-one.png) Source: SGX #### EXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE The ETFs listed on the SGX can be broadly divided into these categories Equities - ETFS that track an equity-related index like the Straits Times Index Bonds - ETFS that track a bond index such as ABF Singapore Bond Index Commodities - ETFS that track a commodities index - Only one commodities ETF in Singapore which tracks the gold spot price REITs - ETFS that track various Asian and Singaporean REIT indexes - Only five REIT ETFs currently listed on the SGX #### WHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET?** [ETFs are gaining popularity](https://api2.sgx.com/sites/default/files/2024-04/ETF%20Market%20Highlights%204Q%202023_0.pdf) in the City-State. In 2023, daily turnover for SGX-listed ETFs in 2023 crossed S\$13 million, according to Singapore stock market data. The data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S\$765 million in net inflows. The information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a whopping S\$10.6 billion. ![Bar Chart, Chart](https://av.sc.com/sg/content/images/sg-etf-article-picture-two.png) Source: SGX According to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S\$2.97 billion and S\$6.69 billion respectively in Dec 2023. ![Bar Chart, Chart](https://av.sc.com/sg/content/images/sg-etf-article-picture-three.png) Source: SGX #### WHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING? Low Fees - ETFs’ fees can be much lower compared to actively managed unit trusts. - Without the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors. Instant and Convenient Diversification - Investing in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification. - Investors will not have to make multiple investments to achieve diversification. Less Time - Since ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities. - Less time is needed to monitor performance since ETFs are typically held on a long-term horizon #### WHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING? Potentially Higher Costs - Although ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks/ bonds due to management fees. Potentially Missing Out on Growth Opportunities - ETFS do not cover the entire range of the market. - Investors may miss out on growth opportunities from smaller stocks that are less represented on indices. - Since ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index. Lower Dividend Cashflow - Investing in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks. Lack of Control - Less control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities. #### WHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING? Market Risk Investing in ETFs is investing in the broader market, meaning your investment is still subject to market risk. Liquidity Risk ETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares. Tracking Risk - ETF performance may not match the performance of the underlying index perfectly. - While an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error. #### THE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO If you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option. Here are a few key tips when choosing an ETF to invest in. Key \#1: Know which asset class you want to invest in - Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best. - For example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk. Key \#2: Aim for the lowest fees and expense ratios - Even a small difference in fees can make a big difference over the long-term. - Since most ETFs are competitive on share price, choose the one with the lowest costs. Key \#3: Pay attention to tracking error - Tracking error indicates how closely an ETF is tracking the underlying index. - Tracking error figures should be published on an ETF’s fact sheet or prospectus. Key \#4: Look at liquidity - To mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website. ETFs have helped bring investing to a whole new generation. For those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon. #### AT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON \| \| \| \| \| \|---\|---\|---\|---\| \| \| ETFs \| Stock \| Unit Trust \| \| Diversification \| Yes \| No \| Yes \| \| Price Transparency \| Yes \| Yes \| No \| \| Dividends \| Yes \| Yes \| Yes \| \| Management Fees \| Yes \| No \| Yes \| \| \| \| \| \|---\|---\|---\| \| \| Benefits \| Costs/ Risk \| \| ETF vs Mutual Fund \| Transparency \| \| \| \| Lower Fees and Transaction Cost \| \| \| ETF vs Stocks \| Diversification \| Management Fees \| \| \| Accessibility \| Tracking Error Risk \| #### HOW TO INVEST IN ETFs The common ways to invest into ETFs include through: – Brokerages – Online trading platforms – Roboadvisors. If you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart [Online Trading Platform](https://www.sc.com/sg/investment/online-trading/?aggregator_instance=etf_101_article). 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In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you. You are fully responsible for your investment decision, including whether the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount. Standard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article. Deposit Insurance Scheme Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S\$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. The information stated in this article is accurate as at the date of publication. Related Articles [![](https://av.sc.com/sg/content/images/241125_StockTradingFundie_Banner-2-768x350-1.png) Basics of Stock TradingBefore you venture deeper into your stock trading journey, this article covers the basics you should know.](https://www.sc.com/sg/wealth/insights/basics-of-stock-trading/) [![](https://av.sc.com/sg/content/images/sg-equity-article-mob.jpg) Equities 101: Beginner’s guide to equity investing in the long runThis beginner-friendly resource breaks down the basics of equity investing.](https://www.sc.com/sg/wealth/insights/equities-101/) [![](https://av.sc.com/sg/content/images/sg-pvb-op-ed-article-master-banner-priced-for-perfection-mobile.jpg) Will history repeat itself in stock markets?In financial markets, there is an inherent tug-of-war between themes/stories and valuations.](https://www.sc.com/sg/wealth/insights/priced-for-perfection/) © Standard Chartered Bank (Singapore) Limited \\| Reg no. 201224747C [Sitemap](https://www.sc.com/sg/sitemap/ "Site map") - [About Us](https://www.sc.com/sg/about-us/ "About Us") - [Bank with us](https://www.sc.com/sg/bank-with-us/ "Bank with us") - [ATMs & Branches](https://www.sc.com/sg/atm-branch-locator/ "ATMs & Branches") - [Get Help](https://www.sc.com/sg/help/ "Get Help") - [FAQ](https://www.sc.com/sg/help/#faq "FAQ") - [Forms and Downloads](https://www.sc.com/sg/help/forms/ "Forms and Downloads") - [Pricing Guide](https://www.sc.com/sg/pricing-guide/ "Pricing Guide") - [Important Information](https://www.sc.com/sg/important-information/ "Important Information") - [Deposit Insurance Register](https://www.sc.com/sg/deposit-insurance-register/ "Deposit Insurance Register") - [Our Thinking](https://www.sc.com/sg/market-outlook/?intcid=web&lang=en&ctry=SG&seg=GWM&channel=PLRB "Our Thinking") - [Investor Relations](https://www.sc.com/sg/investors/ "Investor Relations") - [Global Research](https://www.standardchartered.com/en/learning-resources/global-research.html "Global Research") - [News and Media](https://www.sc.com/sg/news-media/ "News and Media") - [Awards & Achievements](https://www.sc.com/sg/about-us/awards-achievements/ "Awards & Achievements") - [Careers](https://www.sc.com/en/global-careers/experienced-hire/spotlight-career-opportunities/singapore/ "Careers") - [Group Website](https://www.sc.com/en/ "Group Website") - [Speaking up](https://wrs.expolink.co.uk/speakingup "Speaking up") - [Security Tips](https://www.sc.com/global/security-tips/ "Security Tips") - [Protecting our clients](https://www.sc.com/sg/cybersecurity/ "Protecting our clients") - [Cookie Policy](https://www.sc.com/sg/cookie-policy/ "Cookie Policy") - [Sustainability](https://www.standardchartered.com/sustainability/en/index.html "Sustainability") - [Privacy Notice](https://www.sc.com/sg/privacy-notice/ "Privacy Notice") - [Terms & Conditions](https://www.sc.com/sg/terms-and-conditions/ "Terms & Conditions") DOWNLOAD OUR APPS Quick Links - [About Us](https://www.sc.com/sg/about-us/ "About Us") - [Bank with us](https://www.sc.com/sg/bank-with-us/ "Bank with us") - [ATMs & Branches](https://www.sc.com/sg/atm-branch-locator/ "ATMs & Branches") - [Get Help](https://www.sc.com/sg/help/ "Get Help") - [FAQ](https://www.sc.com/sg/help/#faq "FAQ") - [Forms and Downloads](https://www.sc.com/sg/help/forms/ "Forms and Downloads") - [Our Thinking](https://www.sc.com/sg/market-outlook/?intcid=web&lang=en&ctry=SG&seg=GWM&channel=PLRB "Our Thinking") - [Investor Relations](https://www.sc.com/sg/investors/ "Investor Relations") - [Global Research](https://www.standardchartered.com/en/learning-resources/global-research.html "Global Research") - [News and Media](https://www.sc.com/sg/news-media/ "News and Media") - [Awards & Achievements](https://www.sc.com/sg/about-us/awards-achievements/ "Awards & Achievements") - [Careers](https://www.sc.com/en/global-careers/experienced-hire/spotlight-career-opportunities/singapore/ "Careers") - [Group Website](https://www.sc.com/en/ "Group Website") - [Speaking up](https://wrs.expolink.co.uk/speakingup "Speaking up") - [Security Tips](https://www.sc.com/global/security-tips/ "Security Tips") - [Protecting our clients](https://www.sc.com/sg/cybersecurity/ "Protecting our clients") - [Cookie Policy](https://www.sc.com/sg/cookie-policy/ "Cookie Policy") - [Sustainability](https://www.standardchartered.com/sustainability/en/index.html "Sustainability") - [Privacy Notice](https://www.sc.com/sg/privacy-notice/ "Privacy Notice") - [Terms & Conditions](https://www.sc.com/sg/terms-and-conditions/ "Terms & Conditions") - [Deposit Insurance Register](https://www.sc.com/sg/deposit-insurance-register/ "Deposit Insurance Register")
Readable Markdown	#### WHAT IS AN ETF? An exchange-traded fund (ETF) is a type of investment fund that is listed on a stock exchange (e.g. [SGX](https://www.sgx.com/securities/etf-screener)). ETFs are passively managed: they aim to track the movement of a particular index (such as the Straits Times Index) and do not try to outperform the index that they intend to replicate. The idea is to match the performance of the broader market. #### WHAT KIND OF RETURNS CAN I EXPECT WITH ETF INVESTING? As ETFs track an index, the return of an ETF matches that of the index tracked less the ETF’s fees. It should be noted that ETF transactions incur a brokerage fee typically ranging from 0.08% to 0.28% (with minimum commission fees of \$8-\$28) and SGX trading and clearing fees. Like unit trusts, ETFs also usually charge a trustee or custodian fee of 0.1 to 0.15% per annum on the NAV of the fund and a management fee of under 1% per annum (Source: [SGX](https://www.sgx.com/securities-products#ETF)) Returns vary depending on the type of ETF invested in and its associated risk profile— for example, an equity ETF is likely to have higher returns than a bond ETF, which has a lower risk profile. Some ETFs may also pay dividends. For example, the 5 REIT ETFs on the SGX paid out an average dividend of 5.5% with CSOP iEdge SREIT Leaders Index ETF having the highest 12M Gross Yield at 7.12% for the first quarter of 2024. ![Text, File](https://av.sc.com/sg/content/images/sg-etf-article-picture-one.png) Source: SGX #### EXPLORING DIFFERENT TYPES OF ETFS IN SINGAPORE The ETFs listed on the SGX can be broadly divided into these categories Equities - ETFS that track an equity-related index like the Straits Times Index Bonds - ETFS that track a bond index such as ABF Singapore Bond Index Commodities - ETFS that track a commodities index - Only one commodities ETF in Singapore which tracks the gold spot price REITs - ETFS that track various Asian and Singaporean REIT indexes - Only five REIT ETFs currently listed on the SGX #### WHAT IS THE STATE OF PLAY OF THE ETF SINGAPORE MARKET? [ETFs are gaining popularity](https://api2.sgx.com/sites/default/files/2024-04/ETF%20Market%20Highlights%204Q%202023_0.pdf) in the City-State. In 2023, daily turnover for SGX-listed ETFs in 2023 crossed S\$13 million, according to Singapore stock market data. The data also showed that for the year 2023, five new ETFs — all equities focused — launched on the SGX and had collectively attracted S\$765 million in net inflows. The information also revealed that as of end-2023, there are 43 ETFs listed on the Singapore stock exchange with combined AUM of a whopping S\$10.6 billion. ![Bar Chart, Chart](https://av.sc.com/sg/content/images/sg-etf-article-picture-two.png) Source: SGX According to SGX Securities data points, retail and institutional clients ETF adoption grew in tandem, rising 96% in the span of 4 years to S\$2.97 billion and S\$6.69 billion respectively in Dec 2023. ![Bar Chart, Chart](https://av.sc.com/sg/content/images/sg-etf-article-picture-three.png) Source: SGX #### WHAT ARE THE MAIN ADVANTAGES OF ETF INVESTING? Low Fees - ETFs’ fees can be much lower compared to actively managed unit trusts. - Without the need for active fund managers and related researchers for stock selection, cost savings can be passed on to investors. Instant and Convenient Diversification - Investing in an ETF can be equivalent to investing in an entire basket of securities, thus providing instant diversification. - Investors will not have to make multiple investments to achieve diversification. Less Time - Since ETFs are part of a passive investment strategy, less research and due diligence may be required compared to actively picking out securities. - Less time is needed to monitor performance since ETFs are typically held on a long-term horizon #### WHAT ARE THE MAIN DISADVANTAGES ASSOCIATED WITH ETF INVESTING? Potentially Higher Costs - Although ETFs generally have lower fees compared to actively managed funds, they may still have higher costs than buying individual stocks/ bonds due to management fees. Potentially Missing Out on Growth Opportunities - ETFS do not cover the entire range of the market. - Investors may miss out on growth opportunities from smaller stocks that are less represented on indices. - Since ETFs only aim to match market performance and not beat the market, potential returns are limited to the performance of the underlying index. Lower Dividend Cashflow - Investing in equity ETFs is likely to yield lesser dividends compared to when investing in dividend stocks. Lack of Control - Less control over your investments. For example, if an ETF follows several particular securities that comprise an index and they suddenly fall in price, investors cannot reduce their exposure to only those securities. #### WHAT ARE THE MAIN RISKS INVOLVED WITH ETF INVESTING? Market Risk Investing in ETFs is investing in the broader market, meaning your investment is still subject to market risk. Liquidity Risk ETF markets may become illiquid in times of high volatility, particularly ETFs tracking less-liquid indexes. The result could be a distortion in the prices of the ETF shares. Tracking Risk - ETF performance may not match the performance of the underlying index perfectly. - While an ETF attempts to perfectly mimic the performance of the underlying index, there is usually some degree of tracking error. #### THE KEYS TO CHOOSING AN ETF FOR YOUR PORTFOLIO If you’ve already determined that you want to have some passive investments in your portfolio, then ETFs can be a good option. Here are a few key tips when choosing an ETF to invest in. Key \#1: Know which asset class you want to invest in - Understand which asset class (ie equities, bonds, REITs, gold) matches your risk profile best. - For example, invest in an equity ETF for greater potential returns but at a higher risk or invest in a bond ETF for lower returns but at a lower risk. Key \#2: Aim for the lowest fees and expense ratios - Even a small difference in fees can make a big difference over the long-term. - Since most ETFs are competitive on share price, choose the one with the lowest costs. Key \#3: Pay attention to tracking error - Tracking error indicates how closely an ETF is tracking the underlying index. - Tracking error figures should be published on an ETF’s fact sheet or prospectus. Key \#4: Look at liquidity - To mitigate liquidity risk, look at an ETF’s trading volumes which are publicly available on the stock exchange’s website. ETFs have helped bring investing to a whole new generation. For those who shy away from stock picking and actively choosing securities, ETFs can allow them to invest in the broader markets at lower costs. Investing in ETFs is a growing worldwide investing phenomenon. #### AT A GLANCE: ETFs, STOCKS + UNIT TRUSTS COMPARISON \| \| \| \| \| \|---\|---\|---\|---\| \| \| ETFs \| Stock \| Unit Trust \| \| Diversification \| Yes \| No \| Yes \| \| Price Transparency \| Yes \| Yes \| No \| \| Dividends \| Yes \| Yes \| Yes \| \| Management Fees \| Yes \| No \| Yes \| \| \| \| \| \|---\|---\|---\| \| \| Benefits \| Costs/ Risk \| \| ETF vs Mutual Fund \| Transparency \| \| \| \| Lower Fees and Transaction Cost \| \| \| ETF vs Stocks \| Diversification \| Management Fees \| \| \| Accessibility \| Tracking Error Risk \| #### HOW TO INVEST IN ETFs The common ways to invest into ETFs include through: – Brokerages – Online trading platforms – Roboadvisors. If you are interested in adding ETFs into your portfolio, start your account with us at Standard Chartered’s Smart [Online Trading Platform](https://www.sc.com/sg/investment/online-trading/?aggregator_instance=etf_101_article). Your feedback is valuable to us. Did you find this article helpful? This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you. You are fully responsible for your investment decision, including whether the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount. Standard Chartered Bank (Singapore) Limited will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of information in this article. Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S\$100,000 in aggregate per depositor per Scheme member by law. For clarity, these investment products are not deposits and do not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2011. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. The information stated in this article is accurate as at the date of publication.
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