EXCHANGE TRADED FUNDS (ETFs)

An Exchange Traded Fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an open-end investment fund, but trades on an exchange like a stock. ETFs have the combined characteristics of an open-end fund and a stock. Since ETFs are bought and sold on an exchange like shares, they are priced and traded throughout the day.

Click here for more details on trading in SGX ETFs.

Benefits of ETFs

Diversification

With a single trade, you can buy and own a basket of securities, which can include an entire market, country or region.

Transparency

ETFs are listed on an exchange. This allows you to easily access important information about the funds including their real-time prices, trading volumes and index composition.

Intraday Liquidity

You can buy and sell ETFs at any time during the trading day.

Lower Costs

The management fee of an ETF is typically lower than that of a unit trust.