New Next 50 active ETF tracking small and mid-cap stocks launches on SGX
The CGS Fullgoal Singapore Next 50 Active ETF is the first ETF benchmarked to the iEdge Singapore Next 50 Index.
Singapore investors can now gain exposure to small- and mid-cap (SMID) stocks listed on the Singapore Exchange through a new exchange-traded fund (ETF) called the CGS Fullgoal Singapore Next 50 Active ETF. This ETF, launched on August 6, is the first product benchmarked to the iEdge Singapore Next 50 Index, which tracks the 50 largest eligible Singapore-listed companies beyond the 30 that make up the Straits Times Index (STI).
The Next 50 Index covers sectors like healthcare, technology, materials, and energy, which are not represented in the STI. CGS International Securities Singapore, the fund manager, emphasizes that the ETF will be the sole product offering this unique opportunity, currently provided by only two other active ETFs on SGX. While passive ETFs replicate market index performance automatically, active ETFs are managed by professionals who aim to outperform the market.
The CGS Fullgoal Singapore Next 50 Active ETF will hold between 30 and 50 stocks, with at least 80% invested in the Next 50 Index companies and up to 20% in other SGX-listed stocks that meet the fund's criteria. The initial offer period runs from August 6 to August 26, with the ETF expected to list on the SGX Mainboard on September 3 under the stock code Q50.
CGS International’s group head of asset management, James Ong, highlights that most Singapore portfolios mirror the STI, which is concentrated in local banks. The new ETF will complement these holdings, allowing investors to diversify beyond blue chips. Ong notes that the ETF will target investors who already hold STI stocks and provide a disciplined way to expand their portfolios into under-researched sectors.
He also mentions that the fund will be managed by Fullgoal Asset Management (Hong Kong), using a six-factor quantitative model to scrutinize potential investments. The launch of this ETF is seen as a significant milestone for the Next 50 Index, providing a transparent benchmark for the growing SMID segment and contributing to the broader development of Singapore's stock market.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
