Top 10 ETFs in Singapore—The Total Beginner’s Guide to Investing in ETFs (2025)

If you’re here because your New Year’s resolution is to finally start investing, you’ve come to the right place. Investing in Exchange Traded Funds, also known as ETFs is one of the best ways for beginners to start. They’re one of the safest and least volatile forms of investment, and yet, you get way more than the measly returns of a typical savings account.

This article is going to give you the basics of ETFs and name drop some of the top options to look out for when you start your investing journey. I’ll also go into a little bit more detail about each fund below so you have a decent understanding of what you’re putting your money into. 

So what exactly are ETFs and how do you invest in them in Singapore?

Disclaimer: This IS NOT financial advice. Sorry I had to bold+caps at you but it’s important to know I’m just laying out the options for you. The best judge will always be you so go do your own research outside of this article. 

 

The Total Beginner’s Guide to Investing in ETFs

• What are ETFs?
• Why ETFs and not individual stocks?
• ETF vs Unit trust — which is better?
• 10 popular ETFs in Singapore
  • SPDR STI ETF
  • SPDR Gold Shares ETF
  • Nikko AM STI ETF 
  • Lion-OCBC Securities Hang Seng TECH US$
  • Lion-Phillip S-REIT ETF
  • NikkoAM-StraitsTrading Asia ex Japan REIT ETF
  • Nikko AM SGD Investment Grade Corporate Bond ETF
  • ICBC CSOP FTSE Chinese Government Bond Index ETF US$D
  • iShares USD Asia High Yield Bond Index ETF
  • ABF Singapore Bond Index Fund

• How to start investing in ETFs?
• Conclusion: Should you invest in ETFs?

 

So, what are ETFs?

ETFs are investment funds that trade on the stock market, just like individual stocks. But instead of buying shares of a single company, you’re buying a basket of assets—stocks, bonds, commodities, or a mix of them—all bundled into one.

It’s like ordering a bunch of different zi char dishes with white rice as opposed to one sambal fried rice (sorry, it’s lunch time as I write this).

These ETFs are designed to track an index (like the S&P 500), a sector (like tech or healthcare), or even specific themes (like clean energy or gaming). They offer the flexibility of stocks (since you can buy and sell them throughout the day) and the diversification benefits of mutual funds—but usually with lower fees. 

For beginners, they’re an easy, cost-effective way to start investing without the hassle of stock-picking.

 

Why ETFs and not individual stocks?

You can buy a bunch of Singtel shares in the hopes that the share price will rise and/or Singtel will share their profits with you in the form of juicy dividends.

The trouble is that there are more than 600 companies listed on the Singapore stock exchange. And your life doesn’t revolve around stocks and trading. How on earth do you research and choose the right companies to invest in?

That’s why, instead of trying to bet on one superstar company, some people prefer to invest in an entire sector or asset class, even an entire economy. You do that by buying ETFs instead of individual stocks.

Probably the best-known index is the S&P 500, which tracks the 500 biggest companies on the US stock exchange.

In Singapore, we have the Straits Times Index, which tracks the top 30 companies on SGX, mainly reliable “blue chips” like DBS, Singtel, Keppel, and CapitaLand.

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ETF vs unit trust—which type of index fund is better?

Technically, ETFs are not the only way to track the entire market. Index funds are also available in the form of unit trusts (sometimes called mutual funds).

Unit trusts are professionally managed funds and typically cost a lot more than ETFs. Not only do they require a higher initial investment, but there are also annual management and commission fees of up to 5% that eat into your potential profits. You can read more about unit trusts here.

On the other hand, ETFs are passively managed. There may be a fund manager involved, but his/her job is pretty hands-off (apart from putting the different stocks together to track the index). 

Therefore, ETF fees are usually lower than that of unit trusts. Most charge less than 1% and you’ll find many that are charging more like 0.3% or 0.5%.

ETFs are also traded like normal stocks on SGX, so nothing is stopping you from buying just 1 lot of shares. You’re only restricted by your investment broker’s commission fees. 

Not to worry, we’ll cover the cheapest brokerages for buying ETFs at the bottom of this article.

Now that you know the basics, here are 10 popular ETFs in Singapore to get you started.

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10 popular ETFs in Singapore

ETF in Singapore	Trading code	What it tracks	Expense ratio (p.a.)
SPDR STI	ES3	Top 30 companies on SGX	0.28%
SPDR Gold Shares	O87	Price of gold bullion	0.40%
Nikko AM STI	G3B	Top 30 companies on SGX	0.25%
Lion-OCBC Securities Hang Seng TECH	HST	Top 30 tech companies on HKEX	0.45%
Lion-Phillip S-REIT	CLR	High dividend Singapore REITs	0.60%
NikkoAM-Straits Trading Asia ex Japan REIT	CFA	High growth Asian REITs (excluding Japan)	0.55%
Nikko AM SGD Investment Grade Corporate Bond	MBH	SGD-denominated investment-grade corporate bonds	0.26%
ICBC CSOP FTSE Chinese Government Bond Index ETF	CYB	FTSE Chinese Government Bond Index	0.25%
iShares Barclays Cap USD Asia HY Bd ETF	O9P	Tracks the USD High Yield Bond Index in Asia	0.50%
ABF Singapore Bond Index ETF	A35	Singapore govt + quasi-govt bonds	0.24%

What’s an expense ratio (and why should you care)?

via GIPHY

In our table above, you would’ve seen a column labelled expense ratio. It’s the fee you pay to own an ETF—except instead of paying out of pocket, it’s automatically deducted from your investment. It’s shown as a percentage, and it covers things like management costs and administrative fees. 

For example, if an ETF has an expense ratio of 0.20%, that means you’ll pay $2 per year for every $1,000 you’ve invested. Sounds small, right? To be honest, it kind of is, but over time, even tiny fees can add up. That’s exactly why lower expense ratios are generally better for investors. 

The good news? ETFs usually have lower fees than unit trusts, making them a cost-effective way to invest.

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1. SPDR STI ETF (ES3)

The whole point of buying ETFs is to NOT try to game the system. That’s why generic stock market index-tracking ETFs are still some of the most popular ones around. 

The Straits Times Index(STI) is a major stock market index tracking the 30 biggest companies listed on the Singapore Exchange.

Like all other stock market indices, the STI is diversified across different industries, so it’s about as safe as investing in the stock market can get. You’re putting your eggs in 30 different baskets here.

There are 2 STI ETFs available in Singapore: The SPDR STI ETF and Nikko AM STI ETF.

What’s the difference? The SPDR STI ETF has been around for longer (2002 vs 2009), and its fund size is also much larger ($1,688m vs $870m), indicating that it’s more popular. Due to its age and size, the SPDR STI ETF also tracks the STI more accurately.

SPDR STI ETF expense ratio: 0.28%

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2. SPDR Gold Shares ETF (O87)

If you’re super paranoid about stock market crashes—there are always whispers of one—then you might be drawn to investing in gold as a “safe haven”.

Apart from going to the shop to buy gold bullion, you may be interested to know that there’s a gold ETF in Singapore. It’s called the SPDR Gold Shares ETF and it tracks the price of gold.

While buying a stock market-listed product doesn’t seem like a good way to evade a stock market crash, there are some benefits to buying your gold in ETF form. 

You can buy gold in more affordable units and do not have to find a Gringotts Bank-type vault to put all your gold bars and coins—which has costs of its own high (definitely more than the 0.4% expense ratio) logistical costs. 

SPDR Gold Shares ETF expense ratio: 0.4%

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ALSO READ: Gold Prices Hit Record High—How to Invest in Gold in Singapore (2024)

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3. Nikko AM STI ETF (G3B)

As mentioned, the Nikko AM STI ETF is the other STI ETF in Singapore. 

In terms of objectives, it’s the same as the SPDR one—to replicate the performance of the Straits Times Index, i.e. the 30 biggest companies on the Singapore stock exchange.

However, the Nikko AM STI ETF has a larger tracking error, meaning it does not replicate the STI quite as faithfully as the SPDR. This means it can underperform OR outperform the STI itself.

Comparatively, it also has one of the lowest expense ratios amongst the top 10 listed ETFs. 

Nikko AM STI ETF expense ratio: 0.25%

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4. Lion-OCBC Securities Hang Seng TECH US$ (HST)

Interested in dipping your toes in the technology sector? The Lion-OCBC Securities Hang Seng TECH ETF allows you to have a hand in the 30 largest technology companies found on the Hong Kong Stock Exchange. 

Here are a few things you need to know: This ETF replicates the performance of the Hang Seng TECH Index (listed on the HKEX) which consists of companies such as JD.com, camera parts supplier to Huawei and Oppo, NetEase, Chinese shopping platform Meituan, Tencent, LENOVO group, Xiaomi, and more.

It was listed on SGX in Dec 2020 in both SGD (SGX: HST) and USD (SGX: HSS). 

Lion-OCBC Securities Hang Seng Tech US$ expense ratio: 0.45%

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5. Lion-Phillip S-REIT ETF (CLR)

The Lion-Phillip S-REIT ETF offers investors an easy and cost-effective way to tap into Singapore’s thriving real estate market through high-yield REITs—essentially replicating the performance of the Morningstar Singapore REIT Yield Focus Index.

This ETF is packed with industry giants like Mapletree, CapitaLand, Keppel, and Frasers, giving you diversified exposure to some of the most robust and income-generating properties in the region. 

Whether you’re looking for steady dividends or long-term growth, this ETF seems to be a powerhouse in real estate investing.

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6. NikkoAM-StraitsTrading Asia ex Japan REIT ETF (CFA)

While we’re on property, the NikkoAM-StraitsTrading Asia ex Japan REIT ETF might be another option that captures your interest.

This ETF replicates the performance of the FTSE EPRA Nareit Asia ex Japan REITs 10% Capped Index—a basket of the highest-performing Asian real estate investment products.

Top REITs that are currently in this ETF similar to the Lion-Phillip S-REIT ETF include mostly high-yield Singapore REITs such as CapitaLand Ascendas REIT, Mapletree, Frasers, Suntec, and more.

NikkoAM-StraitsTrading Asia ex Japan REIT ETF expense ratio: 0.55%

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7. Nikko AM SGD Investment Grade Corporate Bond ETF (MBH)

The Nikko AM SGD Investment Grade Corporate Bond ETF is a basket of investment-grade quasi-sovereign (partial government), Singapore and foreign corporate bonds which tracks the performance of the iBoxx SGD NonSovereigns Large Cap Investment Grade Index.

With this ETF, you’ll see top holdings in the shape of Temasek Financial (I) Limited, NTUC Income Insurance, DBS Group, OCBC, UOB, HSBC, Singtel, and Changi Airport Group, 

This fund has demonstrated remarkable resilience amid market volatility, maintaining a steady upward trajectory since late 2022. With its strong foundation in high-quality corporate and quasi-sovereign bonds, it offers a stable and diversified investment avenue. Investors can approach this ETF with confidence, knowing it is built for long-term reliability and consistent performance.

Nikko AM SGD Investment Grade Corporate Bond ETF expense ratio: 0.26%

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8. ICBC CSOP FTSE Chinese Government Bond Index ETF US$D (CYB)

ICBC CSOP FTSE Chinese Government Bond Index ETF US$D was listed on the SGX in Sep 2020. Its purpose is to replicate the performance of the FTSE Chinese Government Bond Index which provides access to Chinese government bonds. 

This allows investors to leverage off the Chinese fixed income market, giving them exposure to stable and reliable returns backed by one of the world’s largest economies. With a strong focus on Chinese government bonds, this ETF provides a gateway for investors seeking diversification and steady yields in the fixed-income space.

ICBC CSOP FTSE Chinese Government Bond Index ETF US$D expense ratio: 0.25%

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9. iShares USD Asia High Yield Bond Index ETF (O9P)

This iShares USD Asia High Yield Bond is one ETF to look out for if you’re looking for a cost-effective way to invest in a diverse set of high-yield bonds. Its complete value currently sits at a whopping S$1 billion—making it one of the bigger funds in this list.

First listed in Dec 2011, this ETF tracks the performance of an index called Bloomberg Asia USD High Yield Diversified Credit Index (USD). The latter is a basket of high-yield bonds issued by Asian/Asian-based governments and companies (excluding Japan) such as the Industrial and Commercial Bank of China (ICBC), Rakuten Group, The Islamic Republic of Pakistan, Celestial Miles Limited, Wynn Macau casinos, and more.

A couple of years ago, this ETF became popular largely because of its terrible performance—with prices plunging from an all-time high of US$18k to US$16k, attracting a value-for-money crowd.

iShares USD Asia High Yield Bond Index ETF expense ratio: 0.5%

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10. ABF Singapore Bond Index Fund (A35)

Bonds have always been the “less sexy” sibling to stocks. But I like to say, everyone has a type, and bonds have always been an attractive prospect for the risk-averse (and for those who seek a “safe haven” in a stock market crash).

Plus, high-profile government / government-linked bonds like Singapore Savings Bonds, Temasek Holdings Bond and the Temasek-linked Astrea IV and V Bonds have whetted Singaporeans’ appetite for bonds. 

Wouldn’t it be great if you could buy all those government-ish bonds all in one fell swoop, instead of having to camp at the ATM every time one comes out?

The ABF Singapore Bond Index Fund lets you do that. It’s basically a “group buy” for a whole bunch of bonds issued by extremely credible entities: The Singapore government and gov-linked entities like HDB, LTA, and Temasek Holdings.

While the returns may not exactly be jaw-dropping, you will get (pretty much) guaranteed bond coupon payouts—definitely more than you’d be getting from keeping your money stashed away in some bank account. 

ABF Singapore Bond Index Fund expense ratio: 0.24%

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How to start investing in ETFs 

Investing in ETFs can be a straightforward way to gain market exposure, however, it’s important to consider your financial goals and risk tolerance before getting started. To invest, you’ll need to set aside a sum of money and open a brokerage account that offers access to ETFs.

We recommend Interactive Brokers or SAXO, as they have very user-friendly interfaces and some of the lowest commission fees for SGX ETFs. You can fund your account with just S$1, so feel free to start small and work your way up—boosting both knowledge and experience in investing. 

A more newbie-friendly alternative is to go for a regular savings plan, which is sort of a subscription plan to your investment of choice.

You don’t even have to open a brokerage account with this option! Just sign up for either the DBS Invest-Saver or OCBC Blue Chip Investment Plan and set up a recurring contribution of at least $100/month. The bank will do the rest. However, be aware that this added convenience comes at a higher cost, as management fees tend to be steeper. Additionally, you may find yourself with less control over your investments, as banks aren’t typically known for offering a truly hands-off experience for their clients.

After you get comfortable with investing, you can look into similar products from brokerages, such as the POEMS Share Builders Plan, FSMOne Regular Savings Plan, or the SAXO Regular Savings Plan below.

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Conclusion: Should you invest in ETFs?

To recap, ETFs are a good fit for you if you’re looking for a low-cost, low-barrier-to-entry way to start investing.

Generic market index (e.g. S&P 500 or STI) ETFs have diversification baked into their structure, so they’re great for the risk-averse, or those who simply can’t be bothered to study the stock market. (However, if you’re opting for a more “specialised” ETF like a REITs ETF or a gold one, your investment will be riskier than a “true” market index ETF.)

That said, ETFs aren’t some kind of magical product guaranteed to make you money. As with just about every investment, your capital is never guaranteed.

In the short term, especially, be prepared for the value of your ETFs to fluctuate. This is unavoidable if the economy slows down or if there are new regulations for a particular sector. 

Understand that ETFs are designed for steady, long-term growth rather than explosive, high-risk returns. While they provide a diversified and cost-effective way to build wealth, they won’t match the extreme highs (or lows) of speculative trading. Think of ETFs as a reliable engine for financial growth—built for stability and consistency, not sudden windfalls.

Found this article useful? Share it with your friends and family!

 

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About the author

Having been writing for a little over 10 years, KC has flexed his pen in a variety of industries—think automotive, fitness, entertainment, and finance. He’s ultimately on a mission to prove that any topic, no matter how serious, can be made fun.

Off-duty? It’s all about food, drinks, parties, and gaming marathons.

 

 

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