SGX ETFs Experience Record-Breaking First Half
Exchange-Traded Funds (ETFs) listed on the Singapore Exchange (SGX) have demonstrated remarkable growth during the first half of 2025, with their total Assets Under Management (AUM) soaring to a record high of $14.3 billion. This impressive milestone was fueled by substantial net inflows totaling $700 million, a clear indicator of strong investor confidence and a significant surge in market activity. The overall performance represents a notable 32% year-on-year increase, underscoring the increasing appeal and maturity of the SGX ETF ecosystem. This robust growth reflects a growing diversity in investor portfolios, with a strategic shift towards accessible and transparent investment vehicles. Investors are increasingly gravitating towards a variety of ETF categories, including gold, sustainability-focused funds, and those concentrating on local equities, highlighting a broad-based and healthy interest in different asset classes.
Gold and Sustainability Lead the Way
The extraordinary growth witnessed in the first half of the year was particularly driven by the outstanding performance of both gold and sustainability-themed ETFs. A prime example is the SPDR Gold Shares (GSD/087), which attracted an impressive $578 million in net investments over 13 consecutive months, showcasing gold’s enduring appeal as a safe-haven asset amidst global economic uncertainty. This sustained inflow led to a substantial 75% rise in local holdings and pushed the total AUM for gold ETFs to $2.4 billion, making it a key pillar of the market’s success. Furthermore, sustainability-themed ETFs also saw considerable momentum, with the iShares MSCI Asia Ex Japan Climate Action ETF (ICU/ICM) reaching a record AUM of $1.8 billion. This indicates a growing trend where investors are not only seeking financial returns but are also aligning their portfolios with environmental and social goals, demonstrating a heightened awareness of sustainable investing practices and a desire for responsible portfolio construction.
Local Focus and Diversification Drive Performance
While global trends played a significant role, the sustained interest in locally focused funds also contributed immensely to the market’s robust performance. Singapore-focused ETFs brought in a combined $568 million in net inflows, with the SPDR Straits Times Index ETF (ES3) and Nikko AM Singapore STI ETF (G3B) serving as the primary drivers of this growth. Their collective AUM now stands at a record $2.8 billion, underscoring continued confidence in the Singaporean economy and its key listed companies. In addition, the real estate sector also performed exceptionally well, as S-REIT ETFs attracted $187 million in net inflows, pushing their combined AUM past the significant $1 billion mark. The broad-based growth across multiple sectors—from commodities to sustainable funds and local equities—highlights the healthy diversification and overall maturity of the SGX ETF market, offering investors a wide range of opportunities to build resilient and well-rounded portfolios.
