ETFs (Exchange Traded Funds) represent a basket of assets designed to track an index with low management fees and higher intraday price visibility. In recent years, investors have paid more attention to ETF investing.
In 2021, the combined AUM of SGX listed ETFs increased from S$8.53 billion to S$12.55 billion, with 22 ETFs recording AUM growth since the end of 2020, while five ETF/ETP debutants that track Singapore Equites, S-REITs, APAC REITs and China Equities ended the year with ~S$300 million in combined AUM.
Lion Global and OCBC will jointly launch the Lion-OCBC Securities Singapore Low Carbon ETF on the Singapore Exchange on 28 April 2022.
The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index using a direct investment policy of investing in all, or substantially all, of the underlying Index Securities.
Brief introduction of the tracked index
If you are interested in investing in the low carbon sector, this new ETF might interest you.
Singapore Exchange (SGX) and Oversea-Chinese Banking Corporation (OCBC Bank) have jointly launched the iEdge-OCBC Singapore Low Carbon Select 50 Capped Index on March 14, 2022.
The iEdge-OCBC Singapore Low Carbon Select 50 Capped Index is a suite of equity indices designed to track globally listed Singapore companies that are representative of Singapore's real and financial economy.
The indices provide an opportunity for investors to reduce the carbon footprint of their investment portfolios.
The indices use an exclusionary methodology to remove companies that have a heavy involvement in the fossil fuels sector, while upholding best-in-class selections based on Scope 1 and Scope 2 greenhouse gas emissions (GHG) per unit of revenue.
The largest remaining companies by market capitalisation will constitute the indices with capped weighting to ensure portfolio diversification.
Environmental and carbon intensity data used in the index construction are provided by Sustainalytics, a global responsible investment research firm specialised in environmental, social and governance.
More about the tracked index and ETF
According to the constituent's backtracking, the prospectus shows investors the historical performance and risks of this ETF.
Source: iEdge-OCBC Singapore Low Carbon Select 50 Capped Index's factsheet as of 31st Dec 2021
Source: iEdge-OCBC Singapore Low Carbon Select 50 Capped Index's factsheet as of 31st Dec 2021
According to the prospectus, the 10 largest constituents of Lion-OCBC Securities Singapore Low Carbon ETF are as followed.
For more information, please refer to the Prospectus, Lion Global website
and OCBC website.
No content herein shall be considered an offer, solicitation or recommendation for the purchase or sale of securities, futures, funds or other investment products. It does not take into account your investment objectives, financial situation or particular needs. All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs, funds and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment. Please consult your financial adviser as to the suitability of any investment.
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