Equity ETFs

1Q 2025 Highlights: Singapore, Japan, and Vietnam equity markets led regional gains, with average ETF returns of 6.2%, 5.7%, and 4.5%, respectively, while markets like Indonesia, India, and the U.S. saw declines. Among ETFs, the Lion-OCBC Securities Hang Seng Tech ETF (SGX:HST) delivered the highest 3-month return at 21.2%, driven by strong performance in Hong Kong-listed tech giants like Tencent and Alibaba. Among Singapore-focused ETFs, the Phillip SING Income ETF led with a 7.8% return, while the SPDR STI ETF (SGX:ES3) and Nikko AM Singapore STI ETF (SGX:G3B) also posted strong performances of 5.9% and 5.2%, respectively Overall, STI ETFs maintained a healthy >4% dividend yield, and a dollar-cost averaging approach since end-2019 generated a 6.8% CAGR.

Sustainability-linked ETFs continued to gain traction, with AUM surpassing S$2.1 billion, marking a 141% YoY increase. The NikkoAM-STC MSCI China Electric Vehicles And Future Mobility ETF (SGX:EVS) led gains in this segment with a 7.3% return in 1Q25. The Lion-OCBC Securities Singapore Low Carbon ETF (SGX:ESG) stood out for its 30% 1-year return and 5.9% dividend yield, the highest among sustainability-themed ETFs. Additionally, the iShares MSCI Asia ex Japan Climate Action ETF (SGX:ICU) showed strong long-term outperformance with a 15.5% 1-year return, indicating growing investor interest in climate-focused strategies.