STI Investing reaches $2b milestone

The Index saw increased long-term passive investor participation through its two ETFs.

STI Investing has reached the $2b milestone, according to a Singapore Exchange (SGX) update on 26 November.

“Within the STI, the five stocks DBS, UOB, OCBC, SATS and Ascendas REIT have seen the highest net institutional inflows so far this month, with their average 23% gains driven by $1.4b of net institutional inflows,” said SGX.

Altogether, the 30 stocks comprising the STI have logged over $1b in average daily turnover in 2020 through 25 November. Currently, the movements within November places it to see the strongest STI gains since May 2009.

Moreover, the STI has also seen a surge in participation by long-term passive investors through the two exchange traded funds (ETF) that track the Index, the SPDR STI ETF managed by State Street Global Advisors and the Nikko AM STI ETF managed by Nikko Asset Management.

“The Assets under Management (AUM) of the two STI ETFs took 17 years to reach the $1b milestone in June 2019, and just 17 months to reach the $2b threshold,” reported SGX. “The SPDR STI ETF crossed the $1b threshold for the first time in its history back in June 2020, and the two STI ETFs have seen approximately $900m of net inflows or net unit creations in 2020 to 24 November.”

The secondary market trading turnover of the two ETFs has also exceeded $1.6b in 2020, or 268% than the full-year trading turnover the year prior.