{
  "id": 16457394,
  "title": "SGX’s new ETFs offer Asia, global exposure, but broad baskets can hide risk",
  "url": "https://urgent.news/2026/10/25/sgxs-new-etfs-offer-asia-global-exposure-but-broad-baskets-can-hide",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-25T09:08:08.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/sgxs-new-etfs-offer-asia-global-exposure-broad-baskets-can-hide-risk"
  },
  "original_language": "en",
  "account": "The Singapore Exchange (SGX) recently launched a series of exchange-traded funds (ETFs) offering investors exposure to Asian and global markets. While these funds can provide convenient access to major Asian and global markets, experts warn that investors must remain vigilant about potential risks such as currency fluctuations and concentration hazards. SGX's ETF market has seen rapid growth, with assets totaling over S$20 billion as of June, and net inflows up 240% year-on-year in the second half of fiscal 2026. Many of these funds are eligible for Supplementary Retirement Scheme (SRS) investing, allowing Singapore residents with SRS accounts to invest in them. However, trading in a local currency, such as the Singapore dollar, does not eliminate currency risk, as these funds' investments are often denominated in foreign currencies like US dollars. For instance, the iFast XBG ETF, which invests in the Irish-domiciled Xtrackers AI and Big Data Ucits ETF, has a total expense ratio of 0.63% a year, nearly double the underlying ETF's 0.35% expense ratio. This cost difference could accumulate to over S$5,000 over 30 years, assuming a 7% annual return before fees. Higher trading costs may also be a factor, as these ETFs trade when US stock markets are closed, potentially leading to wider bid-ask spreads. Despite these risks, analysts note that ETFs tracking major Asia indices generally have strong underlying fundamentals and could help investors diversify beyond the US in terms of tech and AI exposure. However, single-country and AI ETFs carry more concentration and volatility risks and may be better suited as smaller allocations for investors with longer investment horizons, especially for retirement portfolios.",
  "summary": "Fees and currencies can affect returns, while single-country and AI funds carry concentration hazards",
  "key_points": [
    "SGX launches ETFs for Asia and global market exposure",
    "Risks include currency fluctuations and concentration hazards",
    "High trading costs may accumulate over long-term investments"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}