SGX Unveils ETF Focused on APAC Financial Sector

• SGX Securities has launched the Lion-OCBC Securities APAC Financials Dividend Plus ETF, a first-of-its-kind fund tracking the performance of the 30 largest financial institutions in the Asia Pacific region.
• With assets under management (AUM) of S$47 million at launch, this ETF is expected to offer investors stable and high dividend returns.
• The launch of this ETF underscores the growth potential of the financial services sector in the Asia Pacific region, driven by increasing economic integration and rising middle-class affluence.

SGX Securities has launched a unique ETF that tracks the APAC financial sector, offering investors a new avenue to capitalize on the region’s economic growth and high dividend returns.

First ETF Tracking APAC’s Financial Sector

The Lion-OCBC Securities APAC Financials Dividend Plus ETF is the first fund of its kind, tracking the performance of the 30 largest financial institutions listed in the Asia Pacific region. The ETF is tracked by the iEdge APAC Financials Dividend Plus Index and has an initial AUM of S$47 million. The launch of this ETF brings the total AUM of SGX Group’s listed ETFs to S$11 billion as of end April 2024.

Capitalizing on APAC’s Financial Sector Growth

The decision to launch an ETF focused on the Asia Pacific financial sector is driven by the recognition of the sector’s growth potential. The region’s financial services sector is poised for growth, fueled by increasing economic integration and the rise of middle-class affluence. This ETF offers investors the opportunity to ride on this growth and enjoy stable and high dividend returns.

Collaboration to Innovate and Capitalize on Opportunities

SGX Group has collaborated with Lion Global Investors and OCBC Securities to launch this ETF. Janice Kan, Co-Head of Equities at SGX Group, highlighted the group’s role as a global centre for investment opportunities in the Asia Pacific region. Teo Joo Wah, CEO of Lion Global Investors, emphasized the ETF’s role in providing investors with consistent and cost-effective access to the Asia Pacific’s financial sector. Wilson He, Managing Director at OCBC Securities, pointed out the significant potential in the financial sector, particularly in the Asia Pacific region, and the prospect of capital gain and high dividend payouts that this ETF offers.

Conclusion

The launch of the Lion-OCBC Securities APAC Financials Dividend Plus ETF marks a significant milestone in the financial sector, offering investors a new and innovative way to capitalize on the growth of the Asia Pacific’s financial sector. As the first ETF of its kind, it underscores the growth potential of the region’s financial services sector and offers investors the prospect of stable and high dividend returns.