SGX Introduces Fresh Listing Criteria for Active ETFs

04 Dec, 2023

SGX Introduces Fresh Listing Criteria for Active ETFs

The Assets Under Management (AUM) for Exchange Traded Funds (ETFs) in Singapore have surged, doubling since 2019 and reaching over $10 billion by October 2023.

Singapore Exchange (SGX) is set to introduce fresh listing criteria specifically tailored for actively managed ETFs. This move aligns with SGX's commitment to adapt to evolving market trends and cater to investors' changing demands.

Serene Cai, SGX Group's Head of Securities Trading, expressed that these new requirements will bolster Singapore's market vibrancy. She emphasized that this initiative aims to reinforce SGX Group's standing as a pioneering hub for innovation and comprehensive investor support in the global financial arena.

In conjunction with these changes, Singapore Exchange Regulation (SGX RegCo) has issued a Practice Note delineating the listing prerequisites for active ETFs. These ETFs, built on managerial investment expertise rather than tracking an index, present opportunities for investors to capitalize on market inefficiencies, adapt to dynamic economic landscapes, and potentially generate alpha.

Besides, the surge in ETFs' AUM has doubled since 2019, surpassing $10 billion by October 2023. Simultaneously, the number of individual retail investors has doubled over this period, while robo advisors have witnessed a threefold increase in AUM, reaching approximately $1 billion.