Investors are increasingly spoiled for choice when it comes to picking which exchange traded fund (ETF) to invest in.
Today, there are many ETFs offered by fund providers, traded across markets around the world and sold through many brokerage platforms.
And the variety of offerings has recently widened even more.
On Aug 2, the Lion-OCBC Securities China Leaders ETF, which is managed by Lion Global Investors and OCBC Securities, was listed on the Singapore Exchange.
Tiger Brokers (Singapore) is one of the authorised participating dealers for the ETF.
The brokerage is the first in Singapore to allow application for IOP via its trading app Tiger Trade.
This enables Tiger Brokers (Singapore) to scale the application process, unlike most other brokerages that are still using manual processes, according to CEO Eng Thiam Choon.
The initial offering period was from July 15, 2021 to July 27, 2021.
According to the brokerage, 26% of investors who applied during IOP have done so via the Tiger Trade app.
“Tiger Brokers (Singapore) is always looking for ways to help our investors diversify their portfolio,” says Eng.
‘We are honoured to be one of the first online brokerages to be appointed as the authorised participating dealer among other well-established brokerages to offer the Lion-OCBC Securities China Leaders ETF,” he adds.
To be sure, ETFs have been on the rise over the last decade or so.
Their popularity is largely driven by their attractive returns that can and have many times outperformed that of actively managed funds.
In addition, their fees are typically cheaper compared to that of actively managed funds.
It is no wonder why then investors are diversifying their portfolios by increasingly putting their money into ETFs.
For the uninitiated, an ETF is a basket of underlying assets that trades on an exchange, just like a stock.
An ETF’s underlying assets are owned by the fund provider and the fund is designed to track their performance. Shares in the fund are then sold to investors.
Although investors who buy an ETF only own a portion of it, they do not own the underlying assets.
Investors may enjoy returns from an appreciation in the ETF and/or lump dividend payments, depending on the underlying assets.
An ETF’s underlying assets could include stocks, commodities, bonds, indices and currencies.
It could also include a mix of these different asset classes.
As for the Lion-OCBC Securities China Leaders ETF, the China-focused, dividend-paying ETF tracks the Hang Seng Stock Connect China 80 Index.
The Hang Seng Stock Connect China 80 Index is among the most widely followed indices in the world.
It comprises 80 of the largest Chinese companies by market capitalisation listed in Hong Kong and/or mainland China that are eligible for Northbound or Southbound trading under the Stock Connect schemes.
Some notable names include Ping An Insurance Company of China, Xiaomi Corp and Tencent Holdings.
Separately, Tiger Brokers (Singapore) is on track to become a Clearing Member of The Central Depository (“CDP”) and a Trading Member of Singapore Exchange Securities Trading (“SGX-ST”) and Singapore Exchange Derivatives Trading (“SGX-DT”).
These come as the brokerage had recently received an approval-in-principal from SGX-ST, SGX-DT, and CDP.
Tiger Brokers expects to use the approval-in-principle to improve the user experience and services it offers to clients.
Photo: energepic.com/Pexels
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