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• How can I start trading in ETFs ?
Investors will need two accounts: a trading account with a stockbroking member of SGX and a securities account with The Central Depository Pte Ltd (CDP). Thereafter, you may buy or sell ETFs through your broker or through your online trading account. If you already have a trading and securities account, you do not need to open a separate trading and securities account to trade ETFs. ETFs are traded during the normal trading hours of SGX, which is from 9am to 12.30pm and 2pm to 5pm. A list of SGX-registered brokers is available here.
• Can I purchase and redeem ETF units through the Fund Manager?
Retail investors cannot purchase or redeem ETF units through the Fund Manager like they do for normal mutual funds and unit trusts. Instead retail investors go through the Participating Dealer. For ETFs, there is a minimum creation and redemption size stipulated in the prospectus. For transactions less than the minimum creation and redemption size, retail investors can simply place orders through their brokerage accounts for execution on the SGX-ST.
• Which of the ETFs listed on SGX can be purchased using CPF funds?
Currently, StreetTRACKS® STI ETF is a CPF approved investment.
• How easily can I buy or sell ETFs?
ETFs are listed on an exchange and can be traded intraday, making it easy for investors to buy or sell ETFs.
• What is the minimum investment amount?
ETFs are traded in board lots. Please refer to individual ETF prospectus or click here for the minimum lot size.
• Can ETFs be sold short?
Yes. All ETFs may be sold short, representing the sale of "borrowed" shares in anticipation of lower prices. Investors are required to make arrangements to borrow securities before selling short. If investors cannot settle by the settlement date, he/she will be bought in.
• What transaction fees do I need to pay to buy and sell ETFs?
- Prevailing brokerage commissions;
- Clearing fees of 0.04% of the contract value (subject to a maximum of SGD600); and
- Goods and services tax at prevailing rate on brokerage commissions and clearing fees.
• Is there a sales charge on ETFs?
While ETFs funds are not subject to sales charges, usual brokerage commissions for securities purchases and sales will apply.
• Do I get paid dividends on ETFs?
ETF holders are eligible to receive their pro rata share of dividends, if any, accumulated on the stocks held in an ETF, and interest on the bonds held in an ETF, less fees and expenses. There may also be the opportunity for dividend reinvestment. You are advised to look into the distribution policy as specified in the prospectus.
• Which of the ETF listed on SGX yield dividends?
Currently, all the SGX-listed equity based index ETFs yield dividends (if any is declared). The ABF Singapore Bond Index Fund and StreetTRACKS® Gold Shares do not yield dividends.
• Do ETFs come with a prospectus and where can I get a prospectus?
Yes, ETFs come with a prospectus and it is important that investors read a prospectus for all ETFs in which they are interested. A prospectus contains more complete information, including charges, expenses and potential risks. Read the prospectus carefully before investing. They can be obtained by clicking here.
• Where can I get up-to-date price information?
The pricing of ETFs is continuous on the Singapore Exchange during normal trading hours. Click here to get live prices of ETFs. Investors can also obtain this information from their brokers and stock quotation systems. The closing prices are also published in major newspapers on the following Singapore business day.
• How are transactions in ETFs settled?
Transactions in ETFs are settled in the same manner as transactions for stocks, which adhere to a T+3 settlement cycle.
• Are there any Singapore dollar denominated ETFs?
Yes. ABF Singapore Bond Index Fund and StreetTRACKS® STI ETF are Singapore dollar denominated.
• What should I do before investing in an ETF?
You should be aware of the following:
- The investment objective and strategy of the ETF;
- The information about the index that the ETF is tracking;
- The ETF's dividend policy;
- The fees and charges that will be borne by you as an investor;
- The channels through which trading information of the ETF will be disclosed; and
- The information about the management company.
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