ETF Insights: SGX welcomes the first SGD short-duration bond ETF (September 2025)

SGX welcomes the first SGD short-duration bond ETF

Short-duration bonds have attracted strong investor interest amidst elevated yields on the short end, as they offer a compelling balance of stability and income. With lower sensitivity to interest rate movements, they act as a defensive anchor in portfolios, especially in an environment of monetary policy uncertainty. Moreover, exposure to currency fluctuations can be reduced by investing in an ETF that hedges non-SGD bonds to SGD.

Investors previously accessed short-duration bond strategies mainly through unit trusts, but this has evolved with the upcoming launch of SGX’s first SGD short-duration bond ETF on 29 September 2025 (target listing date) - the LionGlobal Short-Duration Bond Fund ETF (SGD – SGX:SBO) / (USD –  SGX:SBV).

The ETF’s underlying actively-managed fund, established on 22 March 1991, is one of 19 CPFIS List A funds approved for both CPF OA and SA. Its Active ETF now provides investors with the same portfolio in a listed format, combining the fund’s established track record with the added flexibility and liquidity of ETF trading.

The ETF seeks to provide total return of capital growth and income over the medium to long term, through an actively managed portfolio of Singapore and international bonds, high-quality interest rate securities and other related securities.

As of 31 July 2025, the underlying fund offered quarterly distributions and a yield of 3.18%, surpassing other common Singapore fixed-income instruments. The new ETF would also offer quarterly distributions. The portfolio had a total of 227 holdings with a weighted average duration of 2.25 years and an average credit rating of A-.

At 0.25%, the ETF’s expense ratio is only half that of the equivalent unit trust, which charges 0.50%.

Table 1: Comparison with the UT version

	LionGlobal Short Duration Bond Fund (Unit Trust)	LionGlobal Short Duration Bond Fund (Active ETF SGD Class) (ETF)
Included Under CPF-OA and CPF-SA	Yes for Class A (SGD) Dist units only	No
Minimum Investment	SGD 1,000 (initial) SGD 100 (subsequent)	As low as SGD 1 since SGX trading board lot size is 1 unit
Management Fee	Class A (SGD) Dist: 0.50% p.a.	0.25% p.a^
Subscriptions/Redemptions	Daily dealing (based on NAV)	Intraday trading on exchange
Distribution Frequency	Quarterly for distributing share class NIL for accumulating share class	Quarterly
Pricing Transparency	Priced once daily based on NAV	Real-time intraday market pricing
Source: LionGlobal Investors. ^up to a maximum of 1% p.a. of the NAV of the fund.

When compared to other Singapore bond ETFs such as the Amova SGD Investment Grade Corporate Bond Index ETF (SGX: MBH), ABF Singapore Bond Index Fund (SGX: A35), Xtrackers II Singapore Government Bond UCITS ETF 1C (SGX: KV4), its expense ratio is largely in line.

Notably, SBO is an ETF that invests in both corporates and sovereigns with a short-duration strategy, while its peers are passively managed and invest in either corporates (MBH) or sovereigns (A35 and KV4).

Table 2: Comparison against other peers

Name of ETF	Expense Ratio (%)	AUM (SGD mil)	Average Daily Volume (‘000)	Inception Date
LionGlobal Short-Duration Bond Fund ETF (SGX: SBO)	0.25%	-	-	29 Sep 20251 (target listing date)
Amova SGD Investment Grade Corporate Bond Index ETF (SGX: MBH)	0.26%	1,010	1,100	27 Aug 2018
ABF Singapore Bond Index Fund (SGX: A35)	0.24%	1,170	953.4	31 Aug 2005
Xtrackers II Singapore Government Bond UCITS ETF 1C (SGX: KV4)	0.20%	125	1.8	17 May 2010
1Underlying fund was incepted on 22 March 1991 Source: Bloomberg Finance L.P., iFAST Compilations Data as of 17 September 2025.

Undecided between the US and China? This new ETF holds both.

In today’s interconnected global economy, having exposure to both the United States and China is increasingly relevant for investors navigating a landscape shaped by technological rivalry, trade tensions, and geopolitical uncertainties.

The US, as the world’s largest economy and a hub for innovation, offers access to advanced technology, robust capital markets, and resilient consumer demand. Meanwhile, China, as the world’s second-largest economy, continues to drive global growth through its domestic consumption, technological advancements, and expanding industrial base.

Balancing exposure to both markets allows investors to capture opportunities across complementary growth engines while managing risks associated with trade disputes, regulatory changes, and evolving global supply chains.

This new ETF, Ping An East-West Select ETF (USD – HKEX:9477) / (HKD – HKEX:3477), provides a gateway for investors to have exposure to both the US and China. This ETF seeks to track the Solactive Global Pacific Select Index through a full replication strategy. According to the index provider, the index is designed to leverage “Hong Kong’s pivotal role as a ‘super-connector’, strategically blending high-growth Hong Kong-listed companies with resilient US large-cap equities”.

·       The US component comprises 100 of the largest US-listed companies, with certain sectors (Aerospace and Defence & REITs) excluded in line with the index’s strategic focus.

·       The Hong Kong component is made up of 30 stocks ranked on a composite quality score based on profitability and growth metrics.

As of 16 September 2025, the underlying index has geographical exposure mainly to the US (36.4%) and China (35.9%), with some exposure in Hong Kong (14.6%). Its top ten holdings comprise seven Chinese companies and three US companies. Within the top ten, the US companies are concentrated in the technology sector, while the Chinese companies span across sectors such as Energy, Utilities, Financials and Consumer Staples.

Figure 1: Geographical Exposure of Solactive Global Pacific Select Index

Table 3: Top ten holdings of Solactive Global Pacific Select Index

Rank	Holding Name	Sector	Net Assets (%)
1	China Shenhua Energy Co-H (HKEX: 1088)	Energy	7.1%
2	PICC Property and Casualty Co Ltd (HKEX: 2328)	Financials	5.0%
3	China Petroleum & Chemical Corp (HKEX: 386)	Energy	5.0%
4	China Life Insurance Co Ltd (HKEX: 2628)	Financials	3.9%
5	CLP Holdings Ltd (HKEX: 2)	Utilities	3.6%
6	NVIDIA Corp (NASDAQ: NVDA)	Information Technology	3.6%
7	Microsoft Corp (NASDAQ: MSFT)	Information Technology	3.4%
8	Apple Inc (NASDAQ: AAPL)	Information Technology	3.2%
9	WH Group Ltd (HKEX: 288)	Consumer Staples	3.1%
10	Hong Kong & China Gas Ltd (HKEX: 3)	Utilities	2.7%
		Total	40.5%
Source: Solactive, iFAST Compilations Data as of 16 September 2025

The ETF comes with an expense ratio of 1.05%, lower than its peer CSOP FTSE East-West Equity Select ETF, which has an expense ratio of 1.80%.

Table 4: Peer Comparison Table

Name of ETF	Expense Ratio (%)	AUM (HKD mil)	Average Daily Volume (‘000)	Inception Date
Ping An East-West Select ETF (HKEX: 9477)	1.05%	207.05	0.6	9 Sep 2025
CSOP FTSE East-West Equity Select ETF (HKEX: 3441)	1.80%	1,150	10,000	31 Mar 2025
Source: Bloomberg Finance L.P., iFAST Compilations Data as of 17 September 2025.

ETF Spotlight: Seeking Chinese semiconductor exposure?

China’s technological push has taken a notable step forward, with companies like DeepSeek demonstrating the ability to develop competitive AI models at a fraction of the cost of their US counterparts. This cost efficiency not only highlights China’s growing edge in AI innovation but also reinforces the strategic importance of its semiconductor industry, which stands to benefit from rising domestic demand for high-performance yet cost-effective chips. As AI adoption accelerates, China’s integrated approach to software and hardware development could position it as a formidable player in the global tech race.

To capitalise on this, many ETFs have been launched. For onshore China exposure, there are the CMF CSI Semiconductor Industry ETF (SSE: 561980), Guotai Semiconductor Industry ETF (SSE: 512760), and CPIC CSI Fully Semiconductor ETF (SSE: 512480).

On the other hand, Global X China Semiconductor ETF (HKEX: 9191), which is listed on the Hong Kong Stock Exchange, provides exposure beyond onshore China and includes offshore China exposure as well. Companies such as Hua Hong Semiconductor Limited (HKEX: 1347) and Horizon Robotics (HKEX: 2626) are found in the Global X China Semiconductor ETF but not in the other peer ETFs.

In terms of expense ratio, all the aforementioned ETFs have an expense ratio of 0.60% except for the Global X China Semiconductor ETF (HKEX: 9191), which charges 0.68%.

Overall, for investors seeking exposure to the broader China market (both onshore and offshore), the Global X China Semiconductor ETF (HKEX: 9191) could be a potential option, albeit with a slightly higher expense ratio.

Table 5: Peer Comparison Table

Name of ETF	Expense Ratio (%)	AUM (CNY mil)	Average Daily Volume (‘000)	Inception Date
CMF CSI Semiconductor Industry ETF (SSE: 561980)	0.60%	859.3	49,100	21 Aug 2023
Guotai Semiconductor Industry ETF (SSE: 512760)	0.60%	11,470	310,400	16 May 2019
CPIC CSI Fully Semiconductor ETF (SSE: 512480)	0.60%	23,730	1,300,000	8 May 2019
Global X China Semiconductor ETF (HKEX: 9191)	0.68%	754.451	89.8	7 Aug 2020
1 in HKD Source: Bloomberg Finance L.P., iFAST Compilations Data as of 17 September 2025.

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.