SGX to launch new listing requirements for active ETFs

AUM of ETFs in Singapore has doubled since the end of 2019 to over $10b as of October 2023.

Singapore Exchange will launch new listing requirements for  actively managed Exchange Traded Funds (ETFs) to “stay at the forefront of market trends and respond to the evolving needs of investors.”

SGX Group’s Head of Securities Trading, Serene Cai, said the new requirements will contribute to the vibrancy of Singapore’s marketplace and “reinforce SGX Group’s position as a hub for innovation and investor support in the global financial landscape.”

Singapore Exchange Regulation (SGX RegCo) has also released a Practice Note, a guide on the listing requirements for active ETFs. 

“An actively managed ETF is constructed based on the manager’s investment expertise rather than tracking an underlying index. Active ETFs, therefore, present opportunities for investors to capitalise on potential market inefficiencies, adapt to changing economic environments and potentially generate alpha,” SGX said.

Assets Under Management (AUM) of ETFs in Singapore have doubled since the end of 2019 to over $10b as of October 2023.

The number of direct retail investors has also doubled over this period, whilst AUM managed by robo advisors tripled to approximately $1b.