Time for the CPFIS to get in on the Next 50 act
The EQDP’s bumper boost to the SGX has yet to fully trickle down to the Smids, and the Q50 deserves a CPF...
The Singapore stock market has seen remarkable growth since the launch of the Equity Market Development Programme (EQDP) in 2025, with the Straits Times Index (STI) soaring from 3,800 points to 5,800 in just 19 months. This impressive 52% increase surpasses other major indices like the S&P and Nasdaq, and the entire MSCI World Index, which only experienced a 61% return over the same period.
The STI's 10-year return of 125% in SGD is also over three times that of the Hang Seng Index. However, while the STI has benefited from the EQDP, small and mid-cap companies (SMIDs) have yet to experience the same level of support. The question remains: what is holding back SMIDs, and how can the Singapore Stock Exchange (SGX) help them thrive?
One potential solution is the SGX iEdge Next 50 index, which offers a higher dividend yield than the STI and includes a significant number of real estate investment trusts (Reits). A proposed ETF, the CGS Fullgoal Next 50 Active ETF, aims to boost liquidity and accessibility for SMIDs by providing a diversified basket of stocks, including Reits, growth stocks, and even DBS.
If successful, this ETF could serve as a valuable addition to the CPF Investment Scheme (CPFIS), helping to meet the EQDP's goals and drive further growth in the Singapore stock market.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
