An ETF Gaining Traction Among Younger Investors
According to a recent market update from SGX Research, the Lion-OCBC Securities Singapore Low Carbon exchange-traded fund (ETF) is rapidly gaining popularity, particularly among younger and environmentally conscious investors. The fund’s success is largely attributed to its low-carbon investment strategy and its accessibility through digital platforms. The ETF provides exposure to 40 Singapore-affiliated companies that are listed on both local and overseas exchanges, with a strategic tilt toward firms that have lower carbon emissions. This approach is designed to resonate with a demographic that is increasingly looking to align its investment decisions with its personal values. By offering a straightforward way to invest in a diversified portfolio of companies with strong sustainability credentials, the ETF is successfully capturing a new segment of the market.
Strong Returns and Accessible Investment Model
A key driver of the fund’s growing appeal is its impressive performance since its debut in April 2022. The ETF has delivered a total return of 49% as of August 6, which translates to a solid 13% annualized return. The index it tracks has performed even more remarkably, achieving a total return of 100% by mid-July, more than doubling since the end of 2019. Beyond these compelling returns, the fund’s accessibility has been a significant factor. Its availability on digital platforms and the option for systematic investment through dollar cost averaging (DCA) plans have made it highly attractive. SGX Research notes that the DCA method is particularly appealing to investors who prefer to build consistent, long-term exposure to the market without taking on the greater risk associated with a lump-sum investment.
Diversified Portfolio Attracts Broad Investor Interest
The fund’s portfolio composition is another key element of its success, tracking the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index while maintaining a competitive expense ratio capped at 0.45% per year. The portfolio includes a mix of well-known, established companies and rising mid-cap players, which appeals to a wide range of investors. Among its holdings are household names like Sea Group, Trip.com, DBS, and SGX. The fund also provides exposure to fast-growing firms such as iFAST Corporation and Yangzijiang Financial Holding, both of which have garnered significant institutional interest throughout 2025. This strategic blend of market leaders and dynamic growth companies has contributed to the fund’s total assets under management climbing to $86.3 million, supported by seven consecutive months of net inflows this year.
