It’s 2026, and investing in Singapore has never been more accessible. With just a few taps on your phone, you can gain exposure to the Straits Times Index (STI), Singapore REITs, corporate bonds, gold, and even regional markets—without analysing hundreds of individual stocks.

If you’re new to investing, Exchange Traded Funds (ETFs) are often one of the simplest ways to get started. But before putting your money in, it’s important to understand what ETFs are, how they work, and which ones are commonly used by investors in Singapore.

This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider your financial goals before investing.

What exactly is an ETF?

An ETF is an investment fund that trades on a stock exchange, just like a regular share. Instead of buying one company, you’re buying a basket of assets in a single transaction. That basket could contain stocks, bonds, commodities, or a mix of them.

Most ETFs are designed to track an index. An index is simply a list of securities used to measure how a market or segment performs. For example, when the STI rises or falls, an STI-tracking ETF will generally move in the same direction.

For beginners, ETFs offer diversification, transparency, and relatively low costs compared to many traditional investment products.

Why choose ETFs instead of individual stocks?

Singapore has over 600 listed companies. Researching each one takes time, effort, and ongoing monitoring. Not everyone wants to spend evenings reading earnings reports or tracking quarterly announcements.

Instead of betting on one company, ETFs allow you to invest in an entire sector, asset class, or economy at once. For example, buying an STI ETF gives you exposure to 30 large, established companies listed on SGX. That spreads your risk across multiple businesses rather than concentrating it in one.

This diversification is one reason ETFs are popular among long-term investors.

ETF vs Unit Trust: What’s the difference?

Both ETFs and unit trusts can track an index. The key differences usually lie in cost, structure, and how you buy them.

Unit trusts are typically actively managed and may have higher management fees and sales charges. ETFs, on the other hand, are usually passively managed. They aim to replicate an index rather than outperform it, which keeps costs lower.

ETFs are also traded on SGX like regular stocks. You can buy and sell them during market hours through a brokerage account. Fees are typically lower than those of many unit trusts, which can make a difference over time.

What is an expense ratio and why does it matter?

The expense ratio is the annual fee charged by the ETF provider. It is expressed as a percentage of your investment and automatically deducted from the fund’s assets.

For example, if an ETF has an expense ratio of 0.30%, you would pay $3 per year for every $1,000 invested. While this may seem small, fees compound over time. Lower expense ratios generally help investors keep more of their returns.

Popular ETFs in Singapore (2026)

Here are 10 widely discussed ETFs available on SGX, covering equities, bonds, REITs, and commodities:

1. SPDR Straits Times Index ETF (ES3) Tracks the 30 largest companies listed on SGX. Expense ratio: 0.30%.

2. SPDR Gold Shares (O87) Tracks the price of physical gold. Expense ratio: 0.40%.

3. Amova Singapore STI ETF (G3B) Also tracks the STI. Expense ratio: 0.25%.

4. Lion-OCBC Securities Hang Seng TECH ETF (HST) Tracks leading technology companies listed in Hong Kong. Expense ratio: 0.45%.

5. Lion-Phillip S-REIT ETF (CLR) Provides exposure to high-yield Singapore REITs. Expense ratio: 0.60%.

6. Amova-StraitsTrading Asia ex Japan REIT Index ETF (CFA) Tracks Asian REITs excluding Japan. Expense ratio: 0.55%.

7. Amova SGD Investment Grade Corporate Bond Index ETF (MBH) Tracks SGD-denominated investment-grade corporate bonds.

8. ICBC CSOP FTSE Chinese Government Bond Index ETF (CYB) Tracks Chinese government bonds. Expense ratio: 0.25%.

9. iShares USD Asia High Yield Bond Index ETF (O9P) Tracks USD-denominated high-yield bonds in Asia. Expense ratio: 0.50%.

10. ABF Singapore Bond Index Fund (A35) Tracks Singapore government and quasi-government bonds. Expense ratio: 0.24%.

Each ETF serves a different purpose. Equity ETFs offer growth potential but can be more volatile. Bond ETFs tend to provide more stability and income. Gold ETFs are sometimes used for diversification. REIT ETFs focus on property-related income streams.

How to start investing in ETFs in Singapore

To invest in ETFs listed on SGX, you typically need:

1. A brokerage account.

2. A CDP account (for Singapore-listed securities).

3. A clear understanding of your investment goals and risk tolerance.

Many investors begin with broad market ETFs such as STI or bond ETFs before exploring sector-specific options. Dollar-cost averaging, where you invest a fixed amount regularly, is also a common strategy for beginners.

Should you invest in ETFs?

ETFs are not guaranteed to make money, and prices can rise or fall depending on market conditions. However, they are widely regarded as a practical starting point for new investors because they offer diversification, liquidity, and relatively low costs.

If you prefer a simple, structured approach rather than analysing individual stocks, ETFs may suit your needs. The key is understanding what each ETF tracks, its expense ratio, and how it fits into your overall financial plan.

The most important takeaway: before investing, take the time to learn how the product works. The convenience of modern investing platforms makes it easy to buy—but long-term success still depends on informed decisions and disciplined strategy.