IndexFunds.com Staff

State Street to Launch First ETF in Singapore

Today, the Singapore Exchange (SGX) announced that it intends to sign a memorandum of understanding with State Street Global Advisors (SSgA) to develop Singapore's first indigenous exchange-traded fund (ETF). According to SGX, the new ETF will list and trade on SGX Securities Trading (SGX-ST) by the first half of 2001.

The ETF will track the performance of the benchmark Straits Times Index.

"This announcement is consistent with SGX's objectives of introducing innovative and exciting products into the marketplace," said Thomas Kloet, CEO of SGX. "This ETF will serve as a catalyst for the development and listing of other local and regional ETFs at SGX."

Hon Cheung, Managing Director of SSgA Singapore, commented, "We are excited with the prospect of working with the SGX to develop instruments that enable investors to gain broad, cost-effective exposure to Singapore equities."

SGX said in an earlier announcement that in January it will begin trading funds listed on the AMEX to give Asian investors the opportunity to trade securities linked to U.S. stock indexes.

Historical Returns of the Straits Times Index

Source: Singapore Exchange