4 Stocks This Week (Most widely used ETFs) [9 July 2021] SPDR Gold Share; SPDR STI ETF; Lion-Phillip S-REIT; HSCEI

Exchange-Traded Funds (ETFs) are funds which are traded on the exchange which aims to passively mimic the performance of the index or a sector that it they are tracking. It's created and managed by fund managers and could be bought and sold on the stock exchange like a regular stock. Investing in an ETF is really a less costly way to build a similar portfolio rather than buy individual stocks.

In this week's edition of four Stocks This Week, we look at probably the most popular ETFs on the Singapore Exchange for 1H2021.

SPDR Gold Shares ETF (SGX: O87)

If you wish to invest in gold without the hassle of having to buy, store and maintain physical gold, the SPDR Gold Shares ETF is really a suitable way to get started. The purpose of this ETF is for the shares to track the performance of Gold Bullion, less expense (0.40%).

Perhaps not surprisingly, given the stock market volatility this season, there has been a flight to safety for many investors who would turn to gold investing instead. This has led to an average monthly turnover of approximately $156.9 million for the SPDR Gold Shares ETF.

Year-to-date return for that ETF is at 16.2%. The ETF doesn't pay out any dividend since it only invests in gold.

SPDR STI ETF (SGX: ES3)

One of two indexes that tracks the Straits Times Index (STI), the SPDR STI ETF has been a popular index and a good first investment in Singapore if you are looking to get started on stock investing. Containing 30 of the largest and many liquid blue-chip companies listed on the Singapore Exchange (SGX), companies on the STI account for close to 80% of the total value of all listed on the SGX.

By investing in the SPDR STI ETF, you automatically invest in all 30 companies listed on the STI. The ETF tracks the performance from the STI with an expense ratio of 0.3%

For the 1H2021, the SPDR STI ETF was the second most traded ETF in Singapore, with an average monthly turnover of $145.4 million. Year-to-date return is at – 16.5%

Lion-Phillip S-REIT ETF (SGX: CLR)

The Lion-Phillip S-REIT ETF is among three REITs ETFs listed on the SGX. It invests in high-quality Singapore REITs such as Capital Mall, Mapletree Commercial and Capitaland Commercial. As a whole, it invests in about 25 different REITs and trusts on the SGX.

With REITs prices showing a high level of volatility, especially throughout the March and April period due to the circuit breaker measures, it comes as no surprise that the ETF was extensively traded in 1H2021. On average, the monthly trading turnover was $19.4 million.

Year-to-date return for the REITs is at – 6.8%. It has an expense ratio of 0.6%.

Lyxor China Enterprise (HSCEI) UCITS ETF (SGX: P58)

A popular ETF for those who wish to have exposure to China, the HSCEI UCITS ETF tracks the performance of the Hang Seng China Enterprise Index. The index serves as a benchmark to the performance of Mainland securities that are listed in Hong Kong. These include companies for example Tencent, China Construction Bank (CCB), Ping An, ICBC and China Mobile. In total, there are about 50 companies within this index.

With an expense ratio of 0.7%, the ETF is an excellent way for Singapore investors to get started on purchasing China companies. Year-to-date return for that ETF is at -7.9%. Average monthly turnover for that ETF is $19.3 million.

If you are keen to find out more about the most traded ETFs in 2021, you are able to refer to SGX market update report here.