SGX welcomes ETF tracking APAC financial institutions

It has S$47m in assets under management at launch.

SGX Securities has officially welcomed the Lion-OCBC Securities APAC Financial Dividend Plus ETF, an ETF with S$47m in assets under management (AUM) that tracks the region’s financial sector. This is reportedly the world’s first ETF tracking the APAC financial sector.

The ETF follows the performance of 30 of the largest financial institutions listed in APAC, which are tracked by the iEdge APAC Financials Dividend Plus Index. 

This will allow investors to ride on the strength of the financial sector and have access to “stable and high” dividend returns, said Janice Kan, co-head of equities, SGX Group. 

“We are pleased to collaborate with Lion Global Investors and OCBC Securities to innovate and capitalise on the exciting opportunities in the financial sector. Today’s listing highlights SGX Group’s role as a global centre for investment opportunities in Asia Pacific,” Kan said, commenting on the listing.

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OCBC Securities managing director Wilson He believes that the prospect of capital gain, coupled with “consistently high and sustainable dividend payouts” will drive demand for the ETF.

“With its listing on SGX, local investors will be able to tap into the strengths of Asia Pacific’s financial sector through a convenient and familiar platform,” He said.

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The ETF is available in both Singapore dollar (SGD) and United States dollar (USD) denominations under the SGX tickers YLD and YLU respectively. Investors can trade the ETF via their brokers and trading platforms.

With this listing, SGX’s ETFs collectively represent a total AUM of S$11b as of April 2024.