More options for investors keen on Asia with listing of two ETFs on SGX

One is focused on growth in Asia ex Japan and China, other is China-focused dividend ETF

- Chor Khieng Yuit

Retail investors will have more options following the listing of two exchange-traded funds (ETFs) in recent weeks to add to the 47 already on the Singapore Exchange (SGX).

The ETF that listed on April 2 allows investors to ride on the growth in emerging and developed markets in South-east Asia, as well as Taiwan, South Korea and India, but excluding Japan and China.

Investors keen to ride on China's recovery and earn dividends at the same time can try the ETF listed on March 28.

The two new listings — the Amova MSCI All Countries Asia ex Japan ex China Index ETF and the Lion-China Merchants CSI Dividend Index ETF — bring to 49 the number of ETFs on the SGX. They have combined assets under management of about $14 billion, noted the exchange.

These ETFs allow investors to invest with ease in different regions and in a range of asset classes such as stocks, bonds, real estate investment trusts (Reits) and gold, or in themes such as sustainability.

Dr David Kuo, co-founder of financial education site The Smart Investor, said investors in Singapore benefit from having a wide range of ETFs available.

Without an ETF, a local investor who wanted to invest in firms such as chipmaker Taiwan Semiconductor Manufacturing Company (TSMC), South Korea's Samsung Electronics, India's HDFC Bank or Chinese state-owned shipping group Cosco Shipping would have to do so on the respective foreign share markets.

But an ETF allows investors to get exposure to overseas companies "without taking on too much risk because the investor is still staying in the Singapore market", said Dr Kuo, adding it may attract outside investors to come here to invest.

Nikko Asset Management (Nikko AM), which will change its name to Amova Asset Management on Sept 1, listed the Amova MSCI All Countries Asia ex Japan ex China Index ETF on April 2, making it the firm's seventh such fund on the local exchange.