The first quarter of 2023 has continued to be a volatile period for the financial markets. In March, we saw the collapse of Silicon Valley Bank (SVB) and Signature Bank, as well as the acquisition of Credit Suisse.
We have also seen volatility in the Straits Times Index (STI). Prices went up from 3,245 (3 January) to 3,388 (8 February) and declined to 3,129 (14 March). It’s currently trading at 3,321 as of 21 April, or an increase of about 2.3% since the start of the year.
On the Singapore Exchange (SGX), there are many ETFs that offer exposure in Singapore as well as overseas markets. So by investing in these ETFs on the SGX, we can gain global exposure to the investment sector of our choice.
In this week’s edition of 4 Stocks This Week, we look at 4 ETFs listed on the SGX that have generated returns that are higher than the STI thus far.
SPDR Gold Shares (SGX: O87/GSD)
Denominated in USD (SGX: O87) and SGD (SGX: GSD), the SPDR Gold Shares ETF allows investors to invest in gold via an ETF that tracks gold prices.
Since the start of the year, the SPDR Gold Shares have climbed from 170.94 to 184.86, giving a return of about 8.1%. Spot prices for gold have also crossed US$2,000/ounce earlier this month though the price has since retracted and is currently trading slightly before US$2,000 at the moment. This ETF doesn’t pay out any dividends.
SPDR S&P 500 ETF Trust (SGX: S27)
For those who are looking to invest in the S&P 500, the SPDR S&P 500 ETF Trust (SGX: S27) is an ETF that seeks to provide investment results that, before expenses, correspond generally to the price and yield of the S&P 500.
Since the start of the year, the SPDR S&P 500 ETF Trust has gone up from 380.82 to 412.20, or a price return of about 7.7%. Inclusive of dividends, returns for the year are currently at about 8.14%.
Lion-OCBC Securities China Leaders ETF (SGX: YYY/YYR)
Available in both SGD and RMB, the Lion-OCBC Securities China Leaders ETF is an ETF that tracks the Hang Seng Stock Connect China 80 Index. This index includes the 80 largest Chinese companies in terms of market capitalisation listed in Hong Kong and/or mainland China. This means that investors will be able to access both China A-shares as well as mainland securities listed in Hong Kong through a single ETF, instead of buying individual shares from the Hong Kong Stock Exchange (HKEX), the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). These include companies such as Tencent, Kweichow Moutai, Meituan and Ping An.
Since the start of the year, the Lion-OCBC Securities China Leaders ETF has gone up from 1.585 to 1.63 as the reopening of China’s border bodes well for many companies on the ETF. Inclusive of dividend yield, returns are 5.61% for the year.
Lion-Phillip S-REIT ETF (SGX: CLR)
The Lion-Phillip S-REIT ETF (SGX: CLR), which is Singapore’s first ETF for REITs, has gone up from 0.90 to 0.939. Inclusive of dividend yield, the year-to-date return is currently at 7.82%.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.