From Income to Innovation: What FSM Global Investors Bought Most in 2Q2026

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Executive Summary

After spending much of 2025 prioritising income, capital preservation and diversification, FSM Global investors broadened their focus in the second quarter of 2026. While income-generating investments remained well represented across the Top 10 rankings, investor interest increasingly shifted towards artificial intelligence (AI), semiconductors and regional growth opportunities, particularly in South Korea.

Established income funds such as JPMorgan Global Income Fund and PIMCO Income Fund remained dominant in the unit trust rankings, while AI-related ETFs and semiconductor investments climbed the charts. Singapore blue-chip companies continued to anchor stock portfolios, and bond investors increasingly favoured high-quality Singapore-dollar corporate bonds over the perpetual bank capital securities that had dominated previous quarters.

Compared with both 1Q2026 and 4Q2025, the rankings reveal a meaningful evolution in investor behaviour. Rather than rotating aggressively away from defensive assets, investors expanded their portfolios by combining resilient income holdings with carefully selected growth opportunities linked to AI, advanced manufacturing and regional economic recovery.

Introduction

The second quarter of 2026 marked another important phase for global financial markets. Inflation across major economies continued to moderate, but central banks remained cautious about declaring victory over inflation. The US Federal Reserve maintained the federal funds rate at 3.50%–3.75% throughout the first half of 2026, reiterating that future policy decisions would remain dependent on incoming economic data.
South Korea emerged as one of the quarter’s standout markets, benefiting from recovering semiconductor exports and stronger corporate earnings. This renewed optimism was reflected across both unit trust and ETF rankings, where Korean-focused investments became some of the strongest movers.
Closer to home, Singapore equities remained resilient. Local banks continued to deliver healthy profitability and attractive dividend payouts, while industrial companies linked to global manufacturing cycles benefited from improving demand.

Most Popular Unit Trusts in 2Q2026

The unit trust rankings in 2Q2026 demonstrate that income investing remained the foundation of investors' portfolios, while regional equity and balanced strategies gained momentum as confidence in global markets improved. Compared with both 1Q2026 and 4Q2025, investors continued to favour diversified income solutions but also broadened their portfolios with exposure to South Korea, Singapore equities and Asia-focused balanced funds.

Income strategies remain investors' preferred core holdings

Income-focused funds continued to dominate the rankings, although leadership changed during the quarter. JPMorgan Investment Funds - Global Income A (icdiv) SGD-H climbed from third in 1Q2026 to become the most purchased unit trust after ranking second in 4Q2025, overtaking PIMCO Income Fund Admin Cl Inc SGD-H, which had led the rankings for the previous two quarters. Together, these two funds have consistently occupied the top positions over the past three quarters, highlighting investors' continued preference for diversified portfolios that provide regular income while participating in global equity and bond markets.

Further down the rankings, Allianz Income and Growth Cl AMi3 DIS H2-SGD retained its place in the Top 10, moving down slightly from seventh in 1Q2026 to ninth in 2Q2026 after ranking ninth in 4Q2025. Its consistent presence alongside JPMorgan Investment Funds - Global Income A (icdiv) SGD-H and PIMCO Income Fund Admin Cl Inc SGD-H reinforces the enduring appeal of income strategies despite improving sentiment towards growth assets.

South Korea and Asia gain further traction

One of the strongest trends this quarter was the continued rise of regional equity strategies. LionGlobal Korea Fund SGD climbed from fifth in 1Q2026 after being outside the Top 10 in 4Q2025, making it one of the biggest movers of the quarter. The fund benefited from renewed optimism towards South Korea's technology sector, supported by stronger semiconductor exports and improving corporate earnings.

Regional diversification also extended beyond Korea. PineBridge Acorns of Asia Balanced Fund SGD entered the Top 10 for the first time at sixth place, reflecting investors' growing interest in diversified Asian portfolios that combine both equity and fixed income exposure. The fund's debut suggests that investors are increasingly looking beyond the US and broad global markets for long-term growth opportunities. This is in line with our house view that Asia is currently the best market to be invested in right now.

Singapore-focused strategies remain resilient

Singapore-focused funds also continued to attract strong investor interest. Amova Singapore Dividend Equity SGD (formerly Nikko AM) held on to fourth place for a second consecutive quarter after being absent from the rankings in 4Q2025, demonstrating sustained demand for quality Singapore companies capable of delivering both dividend income and capital appreciation.

Meanwhile, LionGlobal Singapore Trust Acc SGD entered the rankings at tenth place, further reinforcing investors' confidence in Singapore equities. Together, these funds suggest that investors continue to value the stability, dividend resilience and defensive characteristics offered by Singapore-listed companies even as they increase exposure to overseas markets.

Balanced and defensive funds broaden portfolio diversification

Beyond income and regional equity funds, investors also increased allocations to diversified multi-asset strategies. Schroder Multi-Asset Revolution A Dis SGD returned to the Top 10 after ranking tenth in 4Q2025 and dropping out in 1Q2026, indicating renewed interest in flexible portfolios that can adapt across changing market environments.

Allianz Global High Payout AM SGD also made its first appearance in the rankings at seventh place. Its entry highlights investors' continued search for attractive income opportunities across global markets, complementing the more established income funds already featured in the Top 10.

At the same time, United SGD Fund Cl A Dis SGD re-entered the top 10 list after ranking sixth in 4Q2025. As a lower-risk cash management solution, its continued presence reflects ongoing demand from investors seeking liquidity and capital preservation while maintaining flexibility to deploy cash into investment opportunities.

Looking across the past three quarters, the unit trust rankings show that investors are evolving rather than replacing their investment strategies. Income funds continue to anchor portfolios, JPMorgan Investment Funds - Global Income A (icdiv) SGD-H, PIMCO Income Fund Admin Cl Inc SGD-H and Allianz Income and Growth Cl AMi3 DIS H2-SGD remaining consistent favourites. At the same time, the emergence of LionGlobal Korea Fund SGD, PineBridge Acorns of Asia Balanced Fund SGD and Singapore-focused equity funds reflects growing confidence in regional growth opportunities without compromising portfolio diversification.

Table 1: Top 10 Most Popular Unit Trusts

Rank	Product Name (Unit Trusts)
1	JPMorgan Investment Funds - Global Income A (icdiv) SGD-H
2	PIMCO Income Fund Admin Cl Inc SGD-H
3	LionGlobal Korea Fund SGD
4	Amova Singapore Dividend Equity SGD (formerly Nikko AM)
5	Schroder Multi-Asset Revolution A Dis SGD
6	PineBridge Acorns of Asia Balanced Fund SGD
7	Allianz Global High Payout AM SGD
8	United SGD Fund Cl A Dis SGD
9	Allianz Income and Growth Cl AMi3 DIS H2-SGD
10	LionGlobal Singapore Trust Acc SGD

Most Popular ETFs in 2Q2026

The ETF rankings in 2Q2026 highlight a clear shift towards growth-oriented investment themes, with artificial intelligence (AI), semiconductors and South Korea dominating investor interest. Compared with both 1Q2026 and 4Q2025, investors broadened their exposure beyond broad market indices and defensive assets, while continuing to maintain diversified core holdings.

AI remains the dominant investment theme

Semiconductor-related investments continued to dominate ETF purchases during the quarter. The [NYSE] [SOXL] Direxion Daily Semiconductor Bull 3X Shares finally claimed the top spot after ranking second in both 1Q2026 and 4Q2025. This reflects investors' continued conviction that the AI investment cycle remains in its early stages, with sustained demand for advanced chips, AI servers and high-performance computing infrastructure.

The AI theme also broadened beyond semiconductor manufacturers. The [BATS] [DRAM] Roundhill Memory ETF entered the Top 10 for the first time, highlighting growing investor interest in companies producing memory chips, a critical component supporting AI workloads. Together with SOXL, the rankings suggest investors are expanding exposure across different parts of the semiconductor value chain rather than concentrating on a single segment.

South Korea emerges as a new investment hotspot

One of the most notable changes this quarter was the entry of the [NYSE] [EWY] iShares MSCI South Korea ETF at No. 2. Having been absent from both the 1Q2026 and 4Q2025 rankings, EWY became the highest new entrant across all ETF categories.

Its strong debut mirrors the increasing popularity of the LionGlobal Korea Fund in the unit trust rankings and reinforces South Korea as one of the standout investment themes of 2Q2026. Improving semiconductor exports, stronger corporate earnings and ongoing corporate governance reforms boosted investor confidence in Korean equities, particularly among global technology companies.

Investors continue balancing tactical and long-term positions

While thematic ETFs dominated the headlines, investors continued allocating capital towards diversified core holdings.

[SGX] [HST] Lion-OCBC Securities Hang Seng TECH ETF moved up one spot to third place after ranking fourth for the previous two quarters. Investors continue to add to China Technology counters due to the more reasonable valuations compared to their US counterparts.

The [SGX] [ES3] State Street® SPDR® Straits Times Index ETF remained firmly within the Top 5, slipping slightly from third to fifth place but maintaining a much stronger position than its tenth-place ranking in 4Q2025. This reflects continued confidence in Singapore's blue-chip companies, which provide a combination of resilient earnings, attractive dividends and defensive characteristics.

Similarly, the [NYSE] [VOO] Vanguard S&P 500 ETF climbed from tenth place in 1Q2026 after finishing ninth in 4Q2025. The improvement suggests investors continued adding broad US equity exposure alongside their tactical AI positions, using VOO as a core building block within globally diversified portfolios.

Another notable newcomer was the [LSE] [VWRA] Vanguard FTSE All-World UCITS ETF USD Accumulation. Its first appearance in the rankings highlights the growing popularity of globally diversified passive investing, providing investors with exposure to global equity markets through a single ETF.

In contrast, the [SGX] [GSD] SPDR® Gold Shares fell sharply from No. 1 in both 4Q2025 and 1Q2026 to 10th place in 2Q2026. While gold remained an important portfolio diversifier, improving risk appetite encouraged investors to rotate part of their allocations towards higher-growth opportunities linked to technology and regional equities. For our house view on gold, please check out the article: We warned about gold since late 2025. It is now down 29% from its January 2026 peak.

Looking across the past three quarters, several clear trends emerge.

First, AI has become the dominant investment theme, with semiconductor and technology-focused ETFs consistently ranking among investors' favourites. Second, investor interest has broadened beyond the United States, with South Korea emerging as one of the strongest new regional opportunities. Third, while defensive assets such as gold remain part of diversified portfolios, investors have gradually shifted towards sectors offering stronger long-term growth potential.

Overall, the ETF rankings suggest investors are becoming more confident in global equity markets while maintaining a balanced approach through diversified core holdings such as ES3, VOO and VWRA. Rather than replacing long-term investments with tactical trades, they are combining both approaches to capture structural growth opportunities while maintaining portfolio resilience.

Table 2: Top 10 Most Popular ETFs

Rank	Product Name (ETFs)
1	[NYSE] [SOXL] Direxion Daily Semiconductor Bull 3X Shares
2	[NYSE] [EWY] iShares MSCI South Korea ETF
3	[SGX] [HST] Lion-OCBC Securities Hang Seng TECH ETF
4	[NASDAQ] [CONL] GraniteShares 2x Long COIN Daily ETF
5	[SGX] [ES3] State Street® SPDR® Straits Times Index ETF
6	[NYSE] [VOO] Vanguard S&P 500 ETF
7	[LSE] [VWRA] Vanguard FTSE All-World UCITS ETF USD Accumulation
8	[NYSE] [SLV] iShares Silver Trust
9	[BATS] [DRAM] Roundhill Memory ETF
10	[SGX] [GSD] SPDR® Gold Shares

Most Popular Stocks in 2Q2026

While technology-related investments continued to capture investors' attention during the second quarter of 2026, the stock rankings demonstrate that FSM Global investors maintained a balanced approach by combining high-quality Singapore blue chips with global technology leaders and companies poised to benefit from the AI and manufacturing upcycle.

Compared with both 1Q2026 and 4Q2025, investors continued to favour companies with resilient earnings, attractive long-term growth prospects and exposure to structural investment themes such as artificial intelligence, digitalisation and improving global trade. At the same time, Singapore's leading banks and industrial companies remained core portfolio holdings, reflecting confidence in the resilience of the domestic economy despite a higher-for-longer interest rate environment.

Singapore blue chips continue to anchor portfolios

Singapore companies remained firmly at the heart of investors' portfolios, accounting for six of the Top 10 most purchased stocks during the quarter. This reflects investors' continued confidence in businesses with strong balance sheets, resilient earnings and attractive dividend potential.

[SGX] [D05] DBS Group Holdings Ltd retained the No. 1 position for the third consecutive quarter, extending a remarkable run that began in 4Q2025. Despite expectations that interest rates could eventually ease later in the year, investors continued to view DBS as a high-quality franchise capable of delivering sustainable earnings, healthy capital levels and consistent dividend growth.

[SGX] [O39] Oversea-Chinese Banking Corp Ltd moved up one spot to take the fifth place after finishing sixth in 1Q2026 and was out of the Top 10 list in 4Q2025. Together with DBS, the rankings suggest investors continue to have confidence in Singapore's banking sector, supported by resilient profitability and strong capital positions.

Meanwhile, [SGX] [Z74] Singapore Telecommunications Ltd leapt four spots from eighth in 1Q2026 to fourth in 2Q2026. Beyond its attractive dividend yield, investors may have been encouraged by its ongoing digital transformation initiatives and the value-unlocking potential of its regional associates and digital infrastructure businesses.

Industrials gain momentum as global trade improves

The quarter also saw renewed interest in Singapore's industrial and marine sectors.

[SGX] [BS6] Yangzijiang Shipbuilding (Holdings) Ltd maintained its second place after moving up from third in 4Q2025. Its steady rise over three consecutive quarters reflects investors' growing confidence in its healthy order book, improving profitability and continued demand for new vessel construction.

Meanwhile, [SGX] [5E2] Seatrium Ltd moved up from tenth in 1Q2026 to ninth in 2Q2026. As offshore and marine activity continued to recover alongside increased investment in energy infrastructure, investors appeared increasingly optimistic about the company's turnaround prospects.

Together, the two companies illustrate growing investor confidence in businesses benefiting from recovering global trade and industrial activity.

AI supply chain remains a key investment theme

Artificial intelligence continued to influence stock selection, with several companies linked to the semiconductor ecosystem climbing the rankings.

[NASDAQ] [MU] Micron Technology Inc leapt six places to claim the No. 3 spot, after ranking ninth in 1Q2026 and ranking fourth in 4Q2025. The strong rebound reflects renewed optimism surrounding memory chip demand, as AI servers and high-performance computing applications continue to require significantly higher memory capacity.

Closer to home, [SGX] [558] UMS Integration Ltd entered the Top 10 list for the first time at the seventh spot. As a supplier of precision components to the semiconductor industry, UMS continues to benefit from increased investments in advanced chip manufacturing.

Similarly, [SGX] [AWX] AEM Holdings Ltd also entered the rankings for the first time in 2Q2026. The company, which provides semiconductor testing and handling solutions, further reinforces investors' conviction that the AI-driven semiconductor investment cycle still has room to run.

Collectively, these companies demonstrate that investors are looking beyond headline AI beneficiaries and into businesses supporting the broader semiconductor supply chain.

Global technology leaders remain core holdings

Despite growing interest in regional opportunities, investors continued allocating capital to established global technology companies.

[NASDAQ] [MSFT] Microsoft Corp remained firmly within the Top 10 despite slipping from fourth to sixth place. Microsoft has consistently remained among investors' preferred US technology stocks, supported by its leadership in cloud computing, enterprise software and generative AI.

[NASDAQ] [TSLA] Tesla Inc returned to the Top 10 list after being absent in 1Q2026 and ranking sixth in 4Q2025. While competition within the electric vehicle market remains intense, investors continue to view Tesla as a long-term innovator spanning electric vehicles, autonomous driving and AI.

The continued presence of both companies suggests investors remain committed to owning global technology leaders while selectively increasing exposure to emerging AI beneficiaries.

The stock rankings reveal three key themes that have become increasingly evident over the past three quarters.

First, Singapore remains the cornerstone of investors' equity portfolios. DBS has retained the top spot for three consecutive quarters, while OCBC, Singtel, Yangzijiang and Seatrium demonstrate continued confidence in high-quality Singapore-listed companies.

Second, AI remains a powerful structural growth theme. Rather than focusing solely on the largest technology companies, investors are increasingly allocating capital across the semiconductor ecosystem through companies such as Micron, UMS and AEM.

Finally, investors continue to strike a balance between stability and growth. Alongside dependable dividend-paying blue chips, they are selectively adding companies positioned to benefit from long-term structural trends such as artificial intelligence, advanced manufacturing and digital transformation.

Overall, the stock rankings suggest that investors are not chasing short-term market momentum. Instead, they are building diversified portfolios anchored by resilient Singapore companies while complementing them with global technology leaders and businesses benefiting from the ongoing AI investment cycle.

Table 3: Top 10 Most Popular Stocks

Rank	Product Name (Stocks)
1	[SGX] [D05] DBS Group Holdings Ltd
2	[SGX] [BS6] Yangzijiang Shipbuilding (Holdings) Ltd
3	[NASDAQ] [MU] Micron Technology Inc
4	[SGX] [Z74] Singapore Telecommunications Ltd
5	[SGX] [O39] Oversea-Chinese Banking Corp Ltd
6	[NASDAQ] [MSFT] Microsoft Corp
7	[SGX] [558] UMS Integration Ltd
8	[NASDAQ] [TSLA] Tesla Inc
9	[SGX] [5E2] Seatrium Ltd
10	[SGX] [AWX] AEM Holdings Ltd

Most Popular Bonds in 2Q2026

Income investing continued to play an important role in investors' portfolios during 2Q2026, but the bond rankings reveal a notable shift in preferences compared with both 1Q2026 and 4Q2025. Instead of concentrating on perpetual bank capital securities, investors broadened their exposure towards newly issued Singapore dollar corporate bonds while maintaining selective allocations to government bonds and high-quality financial issuers.

This diversification reflects investors' desire to lock in attractive yields while spreading credit and duration risk across a wider range of issuers in an environment where the US Federal Reserve kept interest rates unchanged, and bond yields remained relatively attractive.

Singapore corporate bond issues dominate

One of the most striking developments in 2Q2026 was the dominance of newly issued Singapore dollar corporate bonds. Four of the Top 10 bonds — KOHSP 5.200% 11Oct2030 Corp (SGD) , ACAFP 3.300% 25May2038 Corp (SGD), HOBEE 3.300% 30Jun2031 Corp (SGD) and LREIT 4.280% Perpetual Corp (SGD) — were new entrants compared with both 1Q2026 and 4Q2025. This suggests investors were actively participating in the primary bond market to lock in attractive coupons from familiar Singapore issuers while yields remained elevated.

Besides these, older bond issues WHURSP 4.800% 04Nov2030 Corp (SGD) and MSFSSP 5.100% 29Oct2029 Corp (SGD) also offer attractive yields within the Singapore Dollar bond selection.

GLPSP 9.750% 20May2028 Corp (USD) is the only non-US Treasury bond that is denominated in USD in the Top 10 list. Its attractive yield has garnered good interest from savvy investors looking for short-term bond exposure of less than 2 years.

Government bonds continue to provide stability

The US Treasury T 2.375% 15May2027 Govt (USD) - Retail climbed to second place, having previously topped the rankings in 4Q2025 before dropping out of the Top 10 in 1Q2026. Its return highlights continued demand for high-quality sovereign bonds as investors sought portfolio stability and diversification alongside higher-yielding corporate credit.

Investors diversify beyond perpetual securities

While perpetual bonds remained part of investors' portfolios, their dominance moderated considerably. In 1Q2026, five of the Top 10 bonds were perpetual securities. By 2Q2026, only two perpetuals remained in the rankings.

STANLN 4.300% Perpetual Corp (SGD) declined from No. 1 in 1Q2026 to No. 9 in 2Q2026, while LREIT 4.280% Perpetual Corp (SGD) entered the Top 10 for the first time. The reduced representation of perpetuals suggests investors increasingly favoured fixed-maturity bonds that provide greater certainty over cash flows and principal repayment.

High-quality financial issuers remain popular

Despite the broader diversification, investors continued to favour bonds issued by financially strong institutions. SNBAB 3.400% 01Dec2035 Corp (SGD), issued by SNB Funding Limited, remained in the Top 10 list despite its dropping from fourth in 1Q2026 to seventh in 2Q2026. Its continued popularity reflects investors' preference for investment-grade issuers offering an attractive balance between yield and credit quality.

Looking across the past three quarters, investor preferences have evolved from concentrating on US Treasuries and global perpetual bank bonds in 4Q2025, to investment-grade perpetuals in 1Q2026, and finally towards a much more diversified mix of new Singapore dollar corporate bonds, sovereign bonds and selected perpetual securities in 2Q2026. This progression suggests that investors remain focused on generating attractive income, but are increasingly taking advantage of new issuance opportunities to diversify credit exposure while maintaining overall portfolio resilience.

Table 4: Top 10 Most Popular Bonds

Rank	Product Name (Bonds)
1	KOHSP 5.200% 11Oct2030 Corp (SGD)
2	T 2.375% 15May2027 Govt (USD) - Retail
3	WHURSP 4.800% 04Nov2030 Corp (SGD)
4	GLPSP 9.750% 20May2028 Corp (USD)
5	ACAFP 3.300% 25May2038 Corp (SGD)
6	MSFSSP 5.100% 29Oct2029 Corp (SGD)
7	SNBAB 3.400% 01Dec2035 Corp (SGD)
8	HOBEE 3.300% 30Jun2031 Corp (SGD)
9	STANLN 4.300% Perpetual Corp (SGD)
10	LREIT 4.280% Perpetual Corp (SGD)

Closing Note

The second quarter of 2026 highlights how FSM Global investors continue to adapt to an evolving market environment while remaining disciplined in their long-term investment approach.

Across all four asset classes, investors demonstrated a balanced strategy of combining dependable income-generating investments with carefully selected growth opportunities. Diversified income funds continued to anchor unit trust portfolios, while AI and semiconductor-related ETFs and stocks gained further traction as investors sought to participate in long-term technological innovation. At the same time, Singapore blue-chip companies remained core holdings, underlining continued confidence in the resilience of the domestic market.

Comparing the rankings across 4Q2025, 1Q2026 and 2Q2026, one trend stands out clearly: investors are not abandoning defensive assets in favour of growth, nor are they pursuing growth at the expense of portfolio stability. Instead, they are constructing well-diversified portfolios that combine resilient income with exposure to structural growth themes such as artificial intelligence, digital transformation and the recovery of regional economies.

As markets continue to evolve in the second half of 2026, maintaining a disciplined and diversified investment strategy remains one of the most effective ways for investors to navigate uncertainty while positioning their portfolios for long-term success.

Still not sure what to invest or how to navigate the market for second half of 2026? Email us at advisory@fundsupermart.com for recommendations.