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Many people are wholehearted in their support of companies that lead in sustainable businesses or practices. Yet, when it comes to investing, the focus tends to shift to performance over personal values. This need not always have to be the case as sustainable funds can potentially outperform their peers (Source: Morningstar as at 16 June 2020).
Listed on 28 April 2022, the Lion-OCBC Securities Singapore Low Carbon ETF gives us access to 40 environmentally-conscious Singapore companies, while also boasting a track record of beating the overall market returns in Singapore since its listing about 3 years ago.
These 40 companies on the Lion-OCBC Securities Singapore Low Carbon ETF are not only listed in Singapore, but also in the US and Hong Kong. For example, US-listed Sea Ltd and Grab Holdings Ltd, as well as Hong Kong-listed Trip.com and BOC Aviation are part of the portfolio.1
For those who value both sustainability and performance, the Lion-OCBC Securities Singapore Low Carbon ETF offers an attractive investment opportunity.
#1 Best Performing Singapore Equity ETF Since Listing2
Out of more than 40 ETFs listed on the Singapore Exchange (SGX), only six are sustainability-linked. Among the six, the Lion-OCBC Securities Singapore Low Carbon ETF is the only one focused on the Singapore market and is the top-performing sustainability-linked ETF on SGX in 2024. (Source: SGX’s ETF market highlights 2024 as of March 2025)
Based on SGX ETF market highlights for Q4 2023 and Q4 2024, this ETF achieved the top returns among Singapore equities ETFs on SGX in 2023 and the second top returns among Singapore equities ETFs on SGX in 2024. This translates to an annualised return of 11.2% as of 31 March 2025 since ETF inception on 28 April 2022.2,3 For the same period, SPDR Straits Times Index ETF has returned about 10.7% p.a. 2,3 (Source: Bloomberg as of 31 March 2025.
Note: Each ETF currently adopts a direct replication strategy in tracking their respective indices. The SPDR Straits Times Index ETF and Nikko AM Singapore STI ETF track the Straits Times Index while the Xtrackers MSCI Singapore UCITS ETF tracks the MSCI Singapore Investable Market Total Return Net Index. *Returns are based on NAV-NAV basis in SGD and assuming all dividends are reinvested net of all charges payable upon reinvestment. Performance is calculated in the base currency of the Fund. The Lion-OCBC Securities Singapore Low Carbon ETF was listed on 28 April 2022. Past performance, as well as any prediction, projection, or forecast are not necessarily indicative of future or likely performance. Opinions and estimates constitute our judgment and along with other portfolio data, are subject to change without notice.
Sources: Bloomberg as of 31 March 2025, SGX ETF market highlights Q4 2024 as of 31 December 2024. SGX ETF market highlights Q4 2023 as of 31 December 2023. Past performance is not necessarily indicative of future performance.
#2 Top Dividend-Paying Singapore Equity ETF Of 20242
In general, blue-chip stocks listed in Singapore, including the local banks and REITs, are well-known for paying a relatively decent dividend.
Many of the biggest and most liquid companies also overlap with the Lion-OCBC Securities Singapore Low Carbon ETF, which was the top dividend-paying Singapore equity ETF, and 4th overall on SGX.
It had a dividend yield of 5.7% as at the end of 2024, behind only a high-yield bond ETF and two REIT ETFs – which are typically designed to provide higher payouts.4
In 2024, the Lion-OCBC Securities Singapore Low Carbon ETF declared semi-annual dividends of S$0.02 per unit in June and S$0.0205 per unit in December plus a special dividend of S$0.03 per unit in September 4(Source: Lion Global Investors as at 24 September 2024). Investors may look forward to more of the same if the ETF continues to perform well this year.
Top Dividend Paying ETFs in 2024
| No. | Name | Underlying Index | SGD Code | USD Code | Dividend Yield % |
| 1 | iShares USD Asia High Yield Bond Index ETF | Bloomberg Asia USD High Yield Diversified Credit Index | QL3 | O9P | 7.9 |
| 2 | CSOP iEdge SREIT Leaders Index ETF | iEdge SREIT Leaders Index | SRU | SRT | 6.4 |
| 3 | NikkoAM-StraitsTrading Asia ex Japan REIT ETF | FTSE EPRA/NAREIT Asia ex Japan NTR REIT Index | CFA | COI | 5.9 |
| 4 | Lion-OCBC Securities Singapore Low Carbon ETF6 | iEdge-OCBC Singapore Low Carbon Select 50 Capped Index | ESG | ESU | 5.7 |
Source: SGX’s ETF market highlights 2024 as of February 2025
#3 Invested In Singapore Companies But Diversified Across Sectors And Countries of Listing
The Lion-OCBC Securities Singapore Low Carbon ETF is mandated to invest in 40 companies that represent both Singapore’s real and financial economies, with a focus on index decarbonisation.
This means its investment universe includes not only Singapore-listed companies, but also Singapore companies listed in the US and Hong Kong. This broader scope provides greater flexibility in sourcing more attractive investments.
Currently, about 25% of the constituents in the Lion-OCBC Securities Singapore Low Carbon ETF are listed in the US and Hong Kong.5
Source: SGX Index Edge as of 31 March 2025
Furthermore, the Lion-OCBC Securities Singapore Low Carbon ETF also limits its exposure to single companies by setting a weightage cap of 8%. This means that while you enjoy broad exposure to Singapore businesses, the iEdge OCBC Singapore Low Carbon Select 40 Capped Index5 is diversified across countries of listing.
As you can see from the table below, the three banks have a weightage of much more than 8% each on the Straits Times Index (STI).
Top 10 Constituents of the STI
Source: STI (FTSE Russell) as of 25 March 2025
On the other hand, the Lion-OCBC Securities Singapore Low Carbon ETF does not have Singapore banks as its single largest constituents.
As we can see below, as of 31 March 2025, the weightage of Trip.com had risen to 9.0% of the ETF – exceeding the 8.0% weightage cap on the ETF. This can happen when the share price of a constituent company rises much faster than the rest. In this case, Trip.com’s weightage on the ETF was within the 8.0% cap during the index review on 21 March 2025, and since then, its share price has soared about 16% – increasing its weightage to 9.0% of the ETF.
This is also one reason why indexes are reviewed regularly, not only to screen constituent companies to ensure it continues to be in line with its construction methodology, including if they remain within the weightage caps.
If Trip.com’s weightage on the index continues to exceed this cap in the next index review, which happens in March and September each year, it will be rebalanced.
Source: Lion Global Investors as of 31 March 2025
This diversification benefit extends beyond the individual constituents. According to Lion Global Investors, the Lion-OCBC Securities Singapore Low Carbon ETF has a reduced exposure to the financial sector. Instead, it has greater allocation to the technology sector that demonstrates more growth. For example, Sea Ltd achieved a return of 171.5% in 2024. 1
Source: SGX Index Edge and Bloomberg as of 31 March 2025
#4 Continuous Enhancements To The ETF – In Line With Global Low Carbon Indices
The Lion-OCBC Securities Singapore Low Carbon ETF tracks the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index. The index is reviewed on a semi-annual basis to rebalance any counters that exceed the weightage caps and replace constituents that become ineligible.
While not common, the index methodology can be reassessed from time to time to keep up with industry best practices. This was done for the Lion-OCBC Securities Singapore Low Carbon ETF on 21 March 2025.
From the table below, we see that the new Lion-OCBC Securities Singapore Low Carbon ETF’s index methodology goes a step further to champion sustainable companies.
Firstly, there is a zero fossil fuel (from up to 5% previously) and zero palm oil (not considered previously) mandate – excluding exposure to companies in sectors that are traditionally the largest carbon emitters. The ETF now excludes companies that are involved in controversial business activities, such as alcohol, defense, drugs, gambling, tobacco and adult entertainment.
Moreover, its carbon emission consideration will also be strengthened to include Scope 3 emissions. While these changes bring the ETF up to speed with the best industry practices, it shrinks the investment universe as well. As a result, the number of constituents in the ETF has been revised to 40 constituents, from the original 50 constituents previously, to give more weightage towards the green leaders.
#5 Riding The Long-Term Megatrend Towards Net Zero By 2050
Investing in the Lion-OCBC Securities Singapore Low Carbon ETF is one way to align your investment with your values, with the potential of generating returns.
Over the longer-term, companies that value environmental sustainability and have committed to reducing their carbon footprint may also be better positioned to capture growth opportunities – especially as consumers pivot to greener consumption patterns and governments enforce stricter environmental regulations.
Indeed, Singapore’s survival may be hinged on the global environmental sustainability movement. Over the years, the Singapore Government has consistently echoed its commitment to coastal protection against climate change and clean energy.
In early February 2025, Singapore also submitted its new climate targets, committing to reduce greenhouse gas emissions to between 45 million and 50 million tonnes (Mt) by 2035 – putting it on track to reach net zero emission by 2050. (Source: Straits Times as of 5 March 2025)
The Lion-OCBC Securities Singapore Low Carbon ETF allows investors to ride on this megatrend affecting every aspect of our lives.
And, for those who wish to gain exposure to the ETF, OCBC Securities will be running a special brokerage commission-free buy trades promotion for a limited time from 1 April 2025 to 31 December 2025. This can save you between 0.18% and 0.275% in brokerage commissions, based on your investment value. For example, if you invest $10,000 in the Lion-OCBC Securities Singapore Low Carbon ETF, you would normally have to pay 0.275% in brokerage commission, amounting to $27.50.
You can find out more about the Lion-OCBC Securities Singapore Low Carbon ETF by heading to OCBC webpage and Lion Global Investors webpage. Find out about the following ETFs here: Lion-OCBC Securities Hang Seng TECH ETF, Lion-OCBC Securities China Leaders ETF and Lion-Phillip S-REIT ETF.
Footnotes:
1 Securities referenced are not intended as recommendations to buy or sell.
2 Past performance is not necessarily indicative of future performance.
3 Returns are based on NAV-NAV basis in SGD and assuming all dividends are reinvested net of all charges payable upon reinvestment.
4 Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future payments. Distribution payouts and its frequency might be changed at the Manager’s discretion and can be made out of income, capital or both. Any payment of distributions by the fund may result in an immediate reduction of the net asset value per share/unit. Please refer to LGI website for more information on the income disclosures
5 The investment objective of the ETF is to replicate as closely as possible, before expenses, the performance of the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index using a direct investment policy of investing in all, or substantially all, of the underlying Index Securities.
6 The Lion-OCBC Securities Singapore Low Carbon ETF was listed on 28 April 2022 and will track the iEdge OCBC Singapore Low Carbon Select 50 Capped Index (NTR) until 21 March 2025. Thereafter, it will track the iEdge OCBC Singapore Low Carbon Select 40 Capped Index (NTR).
Disclaimer for Lion-OCBC Securities Singapore Low Carbon ETF – Lion Global Investors Limited
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation to deal in any capital markets products or investments and does not have regard to your specific investment objectives, financial situation or particular needs. You should read the prospectus and Product Highlights Sheet for the Lion-OCBC Securities Singapore Low Carbon ETF (“ETF”), which is available and may be obtained from Lion Global Investors Limited or any of the appointed Participating Dealers (“PDs”), before deciding whether to purchase units in the ETF. Investments are subject to investment risks including the possible loss of the principal amount invested.
The performance of the ETF, the value of its units and any accruing income are not guaranteed and may rise or fall. Past performance, payout yields and payments and any prediction, projection, or forecast are not indicative of the future performance, payout yields and payments of the ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. The ETF’s net asset value may have higher volatility as a result of its narrower investment focus on a limited geographical market, when compared to funds investing in global or wider regional markets.
You should independently assess any information, opinion or estimates, graphs, charts, formulae or devices provided and seek professional advice on them. Any information, opinions, estimates, graphs, charts, formulae or devices provided are subject to change without notice and are not to be relied on as advice. The ETF may invest in financial derivative instruments for hedging or for efficient portfolio management.
The units of the ETF are listed and traded on the Singapore Exchange (“SGX”), and may be traded at prices different from its net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem units in the ETF directly with the manager of the ETF, but you may, subject to specific conditions, do so on the SGX or through the PDs.
Any dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to the Manager’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the ETF.
© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGI is a Singapore incorporated company and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).
Disclaimer – OCBC Securities Private Limited
The information provided herein is a compilation or summary of materials and data based from external sources available to OCBC Securities Private Limited (“OSPL”), and does not represent OSPL’s view on the matters mentioned. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Trading in capital market products and borrowing to finance the trading transactions (including, but not limited to leveraged trading or gearing) can be very risky, and you may lose all or more than the amount invested or deposited. Where necessary, please seek advice from an independent financial adviser regarding the suitability of any trade or investment product taking into account your investment objectives, financial situation or particular needs before making a commitment to trade or purchase the investment product. You should consider carefully and exercise caution in making any trading decision whether or not you have received advice from any financial adviser. You should also read the relevant prospectus and/or profile statement (a copy of which may be obtained from the relevant fund manager or any of its approved distributors), prior to any trading or investment decision. In relation to collective investment schemes, the value of the units and the income accruing therefrom, if any, may rise or fall. For funds that are listed on an approved exchange, investors are not allowed to redeem their units in those funds with the manager, except under certain specified conditions. The listing of the units of those funds on any approved exchange does not guarantee a liquid market for the units. No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein is given by OSPL and it should not be relied upon as such. OSPL does not undertake an obligation to update the information or to correct any inaccuracy that may become apparent at a later time. OSPL shall not be responsible for any loss or damage howsoever arising, directly or indirectly, as a result of any person acting on any information provided herein. The information provided herein is intended for general circulation/discussion purposes only and may not be published or circulated in whole or in part without our written consent. All trademarks, registered trademarks, product names and company names or logos mentioned herein are the property of their respective owners, and you agree that you will not do anything to infringe or prejudice those rights. Reference to any products, services, processes or other information, does not constitute or imply endorsement, sponsorship or recommendation thereof by OSPL.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
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Disclaimer – Singapore Exchange Limited for the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index
The units in the Lion-OCBC Securities Singapore Low Carbon ETF are not in any way sponsored, endorsed, sold or promoted by the Singapore Exchange Limited (“SGX”) and/or its affiliates and SGX and its affiliates make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index and/or the figure at which the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index stands at any particular time on any particular day or otherwise. The iEdge-OCBC Singapore Low Carbon Select 40 Capped Index is administrated, calculated and published by SGX. SGX shall not be liable (whether in negligence or otherwise) to any person for any error in the Lion-OCBC Securities Singapore Low Carbon ETF and the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index and shall not be under any obligation to advise any person of any error therein.
OCBC is a registered trademark of Oversea-Chinese Banking Corporation Limited and is used under licence. Save for the foregoing, all intellectual property rights in the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index vest in SGX. The iEdge-OCBC Singapore Low Carbon Select 40 Capped Index is used by Lion Global Investors Limited under licence.
