For years, the Singapore market was an easy one to overlook. A persistent cycle of delistings, an anaemic pace of new listings and the gravitational pull of more liquid markets abroad, particularly the US, meant that Singapore-listed stocks were treated by many investors as an afterthought. Capital flowed elsewhere and the Straits Times Index (STI) drifted in the background of more exciting narratives.
That story has changed. On Feb 12, the STI crossed the 5,000 mark for the first time in its history, buoyed by a combination of government reforms, improving corporate fundamentals and a renewed interest in Singapore equities from both retail and institutional investors.
Since 2024, when the equities market review group was announced in August, the Singapore market marked several milestones, including hitting 4,000 points for the first time in March 2025. The milestone has led to investors questioning if there is still upside to be captured.
To State Street Investment Management, the creator of Singapore’s first exchange-traded fund (ETF), the answer is clearly yes.
A milestone product
The State Street® SPDR® Straits Times Index ETF — listed on the Singapore Exchange (SGX) under the ticker ES3 — has a history almost as storied as the index it tracks. The SGX itself was formed in 1999 through the merger of three predecessor bourses. Just over two years later, State Street Investment Management launched ES3. The ETF was incepted on April 11, 2002 and listed on April 17 of the same year, becoming Singapore’s first ETF.
More than two decades on, ES3 has not merely survived, it has thrived. According to data from Bloomberg Finance L.P. the ETF remains the largest Singapore-domiciled ETF, tracking a benchmark with an index net market capitalisation of $452.37 billion as at Jan 31. That longevity, in a market where many products have come and gone, is no accident.
“State Street Investment Management has a long heritage in index investing and ETF innovation, and that deep experience shows up in how we operate in every market we serve, including Singapore,” says Janjira Jaruprateepkul, State Street Investment Management’s head of Southeast Asia intermediary.
Jaruprateepkul points to the firm’s early and enduring presence in Singapore as a key differentiator from later market entrants. “Having established ourselves early in the Singapore market, we bring a wealth of local market knowledge and close relationships with regulators, exchanges, and industry stakeholders,” she says. “This long-term engagement enables us to deliver tailored solutions and provide clients with confidence that extends beyond product innovation. We place strong emphasis on education, thought leadership, and long-term ecosystem development.”
To Kunhee Park, State Street Investment Management’s ETF Equities Investment Strategist for APAC, the ETF’s success also comes from State Street Investment Management’s belief in listening first and understanding its clients’ objectives.
“In-house and across our network, we strive to be more than just a partner – we aim to be an essential one. We consult, collaborate, and create opportunities and solutions that help our clients get ahead,” he says.
That emphasis on ecosystem-building has helped ES3 earn a status that few financial products achieve: it has become a household name. For retail and institutional investors alike, ES3 is the default reference vehicle for Singapore equity exposure. When asked what drives continued investor loyalty, Jaruprateepkul notes that investors value history and legacy. Being first matters, and two decades of track record are not easily replicated.
Why you shouldn’t let the STI’s record highs deter you
When an index hits all-time highs, the instinct to wait for a pullback is understandable, but it is also, historically, a costly one.
“Time in the market always beats timing the market,” reasons Park.
While the STI has lagged markets like the US over recent years, he argues that the complexion of the Singapore market has meaningfully improved. “The recent uptick in performance, driven by strong fundamentals and state reforms, shows promise over the next few years,” he says.
For investors who remain anxious about the entry point, Park recommends dollar-cost averaging, which refers to investing fixed sums at regular intervals as opposed to waiting indefinitely for a dip or a moment of clarity. After all, the direction of travel matters more than the precise starting gate.
Strong flows, strong liquidity
The market’s optimism is not merely rhetorical, it is showing up in trading data. ES3’s on-exchange liquidity has remained robust, with an average daily value traded of $3.80 million in 2025. According to Jarupratteepkul, both retail and institutional investors are driving inflows, with no discernible seasonal patterns to demand a signal that the interest is structural rather than speculative.
That breadth of investor base speaks to ES3’s versatility. It functions equally well as a core long-term holding for retail investors building wealth over decades, and as a tactical allocation tool for institutions seeking efficient exposure to Singapore’s blue-chip universe.
For investors who want to go deeper on the Singapore equities story, from the macroeconomic reform drivers to the granular flow and demand data, State Street Investment Management will be hosting a dedicated event on March 24. The session is designed for both professional and retail investors, particularly those with a long-term, buy-and-hold orientation, and will offer a closer look at why Singapore stocks deserve a more prominent seat at the portfolio table.
After years of being overlooked, Singapore’s market is making its case loudly. The question is no longer whether to pay attention, it is how much.
Event details
If you're looking to position yourself in today’s markets amid ongoing macro uncertainties, don’t miss the upcoming forum, Shaping Tomorrow’s Markets: ETF Strategies and Economic Outlook, hosted by The Edge Singapore in partnership with State Street Investment Management. Join a panel of industry experts as they share insights on ETF strategies, the economic outlook, and practical approaches to navigating evolving market conditions.
Date: Tuesday, Mar 24, 2026
Time: 6:15 PM to 9:00 PM SGT
Venue: 9 Straits View (Marina One Auditorium)
Register for the forum here
State Street Global Advisors (SSGA) is now State Street Investment Management. Please go to statestreet.com/investment-management for more information.
State Street Global Advisors Singapore Limited (“SSGA”), 168, Robinson Road, #33-01 Capital Tower, Singapore 068912 (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). T: +65 6826-7555. F: +65 6826-7501.
All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone.
The prospectus in respect of the offer of the units (the "Units") in the State Street® SPDR® Straits Times Index ETF (the "Fund") is available and may be obtained upon request from State Street Global Advisors Singapore Limited ("SSGA", Company Registration number: 200002719D). Investors should read the prospectus before deciding whether to acquire Units in the Fund. The value of Units and the income accruing to such Units may fall or rise. Units in the Fund are not obligations of, deposits in, or guaranteed by, SSGA or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Past performance figures are not necessarily indicative of future performance of the Fund. Investors have no right to request SSGA to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
Diversification does not ensure a profit or guarantee against loss. Past performance is not necessarily indicative of the future performance.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
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