A new exchange-traded fund was listed on the Singapore Exchange (SGX) on 3 September. The CGS Fullgoal Singapore Next 50 Active ETF trades under the stock code Q50 and is the first actively managed exchange-traded fund benchmarked to the iEdge Singapore Next 50 Index.
Many are familiar with the Straits Times Index (STI) and the SGX-listed ETFs that track the top 30 Singapore companies by size and liquidity. The STI has been celebrating record highs over the past year, crossing the 5,000 mark for the first time in February, and the 5,800 mark just this week. But the STI doesn’t and cannot tell the whole Singapore story, and that is where the iEdge Singapore Next 50 Index comes in.
The iEdge Singapore Next 50 Index, which was launched last year, aims to track the performance of the next 50 largest companies listed on the SGX mainboard, beyond the 30 in the STI. It is weighted by market capitalisation to reflect each constituent’s relative size, serving as a meaningful tool for investors and stakeholders to look beyond Singapore’s large-cap companies to small- and mid-cap companies.
Instead of just investing in individual companies hoping they’ll do well, the CGS Fullgoal Singapore Next 50 Active ETF gives exposure to between 30 and 50 stocks, giving you broader access in a single convenient trade.
#1 This Is An Actively Managed Fund
Unlike many ETFs that passively track their benchmark index, the CGS Fullgoal Singapore Next 50 Active ETF is actively managed. This means professional portfolio management is involved, as the ETF tries to outperform its benchmark index.
CGS International Securities Singapore manages the fund, advised by Fullgoal Asset Management (HK). This means that CGS is responsible for portfolio management, implementation, and risk oversight, while Fullgoal provides their sophisticated quantitative investment engine to identify companies with strong fundamentals, sustainable business models, and growth potential.
The fund charges a 0.65% management fee, and the total expense ratio is capped at 1.50%.
#2 Fullgoal’s Quantitative Model Is Being Used For The First Time For Singapore Equities
The fund’s investment advisor Fullgoal Asset Management (HK) is a wholly-owned subsidiary of Fullgoal Fund Management from China. Since 2009, it has used and refined its quantitative model into one that is robust and transferable across different market environments.
It currently manages four quantitative enhanced index funds across China A-shares, MSCI, and HK Stock Connect mandates on the same framework.
Its six-factor model looks at a broad range of criteria, from valuation (as determined by PE and PB) to expected growth (based on forecast revenue and earnings growth) to market factors (including turnover, liquidity, and idiosyncratic risk).
#3 The Fund’s Portfolio Represents A Broader Cross-Section Of Singapore’s Industries
Inevitably, the STI has become heavily weighted toward financials and banks, with stocks like DBS, OCBC, UOB, and SGX now making up over 50% of the Index’s Net Asset Value (NAV). This limits other sectors from penetrating the STI, such as materials and energy, and healthcare.
Even sectors that have penetrated the STI, such as technology and consumer staples, remain relatively underrepresented.
The Fund’s top 10 holdings at launch include supermarket chain Sheng Siong Group (7.56% of NAV), palm oil producer First Resources (5.85% of NAV), and global food and agri-business Olam Group (4.52% of NAV). This provides convenient access to the companies that could become Singapore’s next blue chips.
#4 The Fund Isn’t Purely Invested In Next 50 Index Constituents
Ultimately, the fund’s portfolio will hold 30 to 50 stocks, with at least 80% from the Next 50 Index, forming its core. However, it lets its six-factor model identify the strongest signals from other SGX-listed stocks, so up to 20% of the portfolio (about five to eight stocks) can come from outside the Next 50 Index.
According to manager CGS, this “allows the fund to capture opportunities within the broader market, maximising risk-adjusted excess return versus the iEdge Singapore Next 50 Index, within defined risk limits.”
Notably, no stock can exceed a 10% NAV threshold, preventing any one stock from dominating the portfolio.
Currently, of the 42 stocks represented in the fund, you will find names like Singapore Airlines (5.49% of NAV), Singapore Exchange (4.10% of NAV), UOB (3.16% of NAV), YZJ Shipbuilding (2.69% of NAV) and DBS (2.02% of NAV), all of which are represented in the STI, not the Next 50 Index.
#5 REITs Make Up A Significant Proportion Of The Fund
While the STI is predominantly banks and financials, the Next 50 Index has significant exposure to property companies and real estate investment trusts (REITs), about 39%.
Because the fund is largely benchmarked to the Next 50 Index, it is difficult to avoid the relatively high level of REIT exposure.
The portfolio includes Suntec REIT (8.65% of NAV), UI Boustead REIT (4.21% of NAV), CapitaLand India Trust (3.17% of NAV), Keppel REIT (2.43% of NAV), and ESR-REIT (2.41% of NAV).
Read Also: REITs Report Card: How Singapore REITs Performed In FY2025
However, the fund’s active management mandate still assesses all constituents, including REITs, and adjusts portfolio weights within defined limits based on the six-factor model. This ensures that the REITs representation does not impede the fund’s flexibility.
#6 Rebalancing Is Expected Monthly
The fund’s active management includes an expected monthly re-scoring and rebalancing cycle through the six-factor quantitative model.
The portfolio rebalancing is targeted at a maximum of 20% one-way turnover per month, though the fund’s manager may adjust the frequency based on prevailing market conditions. Such a turnover may involve higher expenses, including brokerage commissions, and may negatively impact the fund’s net assets.
#7 The Fund Raised Approximately $28.8 Million During The Initial Offer Period
According to the CGS International press release, the CGS Fullgoal Singapore Next 50 Active ETF raised approximately $28.8 million at $1.00 per share during the initial offer period. The EOD NAV per share as of 4 September is currently $1.00.
The Fund’s shares opened at $1.009 on 3 September and closed at $1.005 on launch day.
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