Singapore stocks at record highs. 5 ways to invest in blue chips and growth opportunities

What happened?

Singapore stocks have been on a strong run.

The Straits Times Index (STI) has reached new record highs in 2026, after also delivering strong returns in 2025.

Earlier, we looked at why Singapore stocks are still worth looking at in 2026, even after the market reached new highs.

For investors who want exposure to Singapore stocks, the question is increasingly how to invest in the market. 

Many investors may be wondering: should I buy an STI ETF, invest through an actively managed fund, look beyond the STI to smaller companies, or pick individual stocks myself? 

In this article, I look at five ways to invest in Singapore stocks and how I would think about choosing between them.

Why consider investing in Singapore stocks in 2026? 

The strong performance of the STI has brought renewed attention to the Singapore stock market.

Singapore's economy has remained resilient too. In August, the Ministry of Trade and Industry raised its 2026 GDP growth forecast to 4.5% to 5.5%, from 2.0% to 4.0% previously, following stronger-than-expected growth in the first half of the year.

Interest in the local stock market has also picked up. In July, retail investors were net buyers of Singapore stocks for a sixth consecutive month, while STI ETFs recorded their 17th consecutive month of net inflows.

Beyond the market rally, we have also identified several long-term growth themes in Singapore stocks, including AI and data centres, infrastructure, energy security and Singapore's growing role as a wealth hub.

For investors whose future expenses are largely in Singapore dollars, owning some Singapore-dollar assets may also help reduce the amount of foreign currency exposure in the overall portfolio.

However, a strong historical return is not by itself a reason to invest.

After a significant rise in share prices, valuations matter even more. I would therefore focus on what I am actually buying and how it fits into my portfolio, rather than investing simply because the STI has reached a record high.

I also would not see Singapore stocks as necessarily better than overseas stocks. Instead, I would consider how local equities can complement my broader global investments.

So if I want exposure to Singapore stocks, what are my options?

How can you invest in Singapore stocks?

Broadly, I see five ways to gain exposure to Singapore stocks: 

1. Invest through an STI ETF or index fund
2. Invest through an EQDP fund
3. Invest in Singapore stocks through other Singapore equity unit trusts and mutual funds
4. Invest beyond the STI through the Singapore Next 50 ETF
5. Pick individual Singapore stocks yourself

The main differences come down to which part of the Singapore market I want to own, whether I prefer active or passive management, and how much stock selection I want to do myself. 

Let’s look at each option.

1. Invest in Singapore stocks through an STI ETF or index fund

For investors looking for a straightforward way to gain exposure to Singapore's largest listed companies, an STI ETF remains one of the simplest options.

The STI consists of 30 of the largest and most liquid companies listed on SGX.

There are currently three SGX-listed STI ETF counters:

• State Street SPDR STI ETF (SGX: ES3)
• Amova Singapore STI ETF Distributing Class (SGX: G3B)
• Amova Singapore STI ETF Accumulating Class (SGX: GAB)

For a closer comparison of their fees, dividend policies, liquidity and performance, you can compare them in our guide to the STI ETFs available in Singapore. 

The main advantage is simplicity. With one investment, I gain exposure to 30 Singapore blue-chip companies without having to decide which individual stocks to buy.

However, this exposure is more concentrated than it may first appear.

The STI is heavily concentrated in Singapore banks. DBS, OCBC and UOB together make up more than half of the index, which means investing in an STI ETF also gives me significant exposure to the financial sector.

This concentration has helped the STI while Singapore bank shares have performed strongly. But it also means buying an STI ETF is not the same as gaining evenly diversified exposure across the entire Singapore market.

If I already own significant positions in DBS, OCBC or UOB, adding an STI ETF could give me even more exposure to the same companies.

Another option is the Amundi Singapore Straits Times Fund, a unit trust that also tracks the STI. Launched by Amundi and Endowus in 2025, it provides similar passive exposure to the STI without having to buy an ETF on SGX, and can be invested in using cash, CPF OA and SRS through Endowus.

I would therefore see an STI ETF and the Amundi Singapore Straits Times Fund as a relatively low-cost and simple way to invest in Singapore's largest companies, while still checking how much overlap it creates with the rest of my portfolio.

2. Invest in Singapore stocks through an EQDP fund 

If I want to look beyond the largest companies in the STI, actively managed funds under Singapore's Equity Market Development Programme (EQDP) offer another route. 

MAS introduced the EQDP in 2025 to develop Singapore's fund management industry and increase investor participation in Singapore equities.

In February 2026, the programme was expanded from S$5 billion to S$6.5 billion, with S$3.95 billion allocated across nine appointed asset managers at the time.

Several of these EQDP managers have launched funds that are available to retail investors. What makes these funds interesting is that many invest more heavily outside the STI.

For example, the Amova Singapore Small Mid Cap Equity Fund is specifically focused on Singapore small and mid cap stocks.

Other funds from Amova, Eastspring, Fullerton, LionGlobal and Manulife combine large cap holdings with significant exposure to smaller Singapore companies.

This means investors can potentially gain exposure to parts of the Singapore market that are poorly represented in the STI.

There is a potential case for active management in this part of the market. Smaller companies tend to receive less research coverage than large companies such as DBS or OCBC, which may provide more opportunities for a manager to identify companies it believes are undervalued or have stronger growth prospects than the market recognises.

But there is a trade-off.

EQDP funds are actively managed, which generally means higher management fees than an STI ETF.

Many of the newer funds also have short live track records, so it is still too early to know whether their managers will consistently add enough value to justify these higher fees. 

There is also no single "EQDP strategy". Different managers can invest in very different companies and use different approaches.

I therefore would not invest in a fund simply because it has been selected under the EQDP.

I would look at what the fund owns, how different its portfolio is from the STI, its fees, its investment approach and whether it fits with the rest of my portfolio.

We’ve covered the Singapore EQDP funds available to retail investors in more detail here, including how to choose between them.

3. Invest in Singapore stocks through other Singapore equity unit trusts and mutual funds

The EQDP has attracted significant attention, but actively managed Singapore equity funds existed long before the programme was introduced.

Retail investors can also consider established Singapore equity funds such as the United Singapore Growth Fund, Amova Singapore Equity Fund and Schroder Singapore Trust.

One important difference is their track record.

The Amova Singapore Equity Fund, for example, has a track record dating back to 1987.

The fund aims to maximise medium to long-term capital appreciation by investing primarily in SGX-listed stocks, and is benchmarked against the STI Net Total Return Index.

Unlike an STI ETF, however, it is actively managed. The manager can over- or under-weight benchmark constituents and invest in non-benchmark companies, so its portfolio can differ from the STI.

The longstanding SGD Class has a management fee of 0.75% p.a. and is currently available for CPFIS-OA investments.

The Schroder Singapore Trust has also been investing primarily in Singapore equities for decades.

This longer history gives me more evidence to assess the manager than I would have for many of the newly launched EQDP funds.

For example, I can look at whether the manager has beaten its benchmark over five or ten years, how the fund performed during market downturns, how much risk it took to generate its returns, and whether its investment approach has worked consistently.

That does not automatically make an older fund better.

An established fund may still underperform its benchmark, and past performance does not guarantee future returns. But having a longer track record gives me more information with which to assess whether the manager has added value over time.

This is why I would compare both the newer EQDP funds and established Singapore equity funds if I wanted active exposure to the Singapore market, rather than looking at either category in isolation.

If you are less familiar with actively managed funds, you can also read our guide on how to compare mutual funds in Singapore.

4. Invest in Singapore’s smaller companies through the new Next 50 ETF

There is also a new way to invest beyond Singapore's 30 largest companies.

The CGS Fullgoal Singapore Next 50 Active ETF (Q50) is expected to begin trading on SGX on 3 September 2026.

It uses the iEdge Singapore Next 50 Index as its reference benchmark. The index tracks the next 50 large and liquid SGX Mainboard companies beyond the 30 constituents of the STI.

You can read our guide to the iEdge Singapore Next 50 Index and its constituents, as well as our review of the CGS Fullgoal Singapore Next 50 Active ETF (Q50).

In simple terms, the STI focuses on Singapore's largest 30 companies, while the Next 50 looks at the next tier of listed companies.

However, the CGS Fullgoal Singapore Next 50 Active ETF (Q50) is not a passive ETF.

Unlike an STI ETF that aims to closely replicate its benchmark, It is actively managed, using factors such as valuation, growth, earnings quality and analyst sentiment to construct a portfolio of around 30 to 50 stocks. 

The companies in the Next 50 also provide a different sector mix from the STI.

Following the June 2026 index review, technology-related exposure across several industry classifications represented about 26.2% of the index. Under SGX's formal RBICS sector classification, the technology sector itself accounted for 16.3%.

For an investor who already owns an STI ETF or Singapore bank stocks, the Next 50 could therefore provide a way to broaden exposure to other parts of the Singapore market.

However, smaller companies can also experience greater share-price volatility and lower trading liquidity.

CGS Fullgoal Singapore Next 50 Active ETF (Q50) is also a new fund with no live investment track record yet. I would therefore be careful about treating historical or backtested performance as though it were the actual return investors will receive after launch.

5. Pick individual Singapore stocks yourself

The final option is to skip a fund altogether and build my own portfolio of Singapore stocks.

This gives me the greatest control over what I own.

If I already have significant exposure to Singapore banks, for example, I can direct new investments towards other companies or sectors rather than automatically adding more bank exposure through an STI ETF.

I also decide how much to allocate to each company. If I have stronger conviction in one company, I can give it a larger position. If its fundamentals deteriorate or my investment thesis changes, I can reduce or exit the position.

And because I own the stocks directly, there is no recurring fund management fee.

The flexibility comes with more responsibility. I need to research the companies myself, understand their financial position and risks, monitor their results and decide when to buy, add, reduce or sell. I also have to manage diversification myself.

A portfolio of ten stocks may give me more control than a fund, but it also exposes me much more heavily to the performance of each individual company.

If I am picking individual stocks myself, I would generally keep these higher-conviction positions within my Opportunity Pot and set clear limits on position sizes.

For investors who enjoy researching companies and want greater control, this approach may be worth considering. If I prefer not to make these decisions myself, an ETF or actively managed fund may be simpler. 

For investors who want what we’d invest in, why, and what changes our view, Beansprout Pro includes our Singapore stock research and Opportunity Model Portfolio, showing how we identify opportunities, size positions and decide when to add, reduce or exit. 

Find out how we would invest S$100,000 in Singapore stocks in August 2026 with updated Beansprout Pro's model portfolio here. 

How do the ways to invest in Singapore stocks compare? 

Here is how I would broadly compare the five approaches.

How to choose between Singapore stocks, ETFs and funds?

I think there are three main decisions to make. 

1. Do you want large cap or small and mid cap exposure?

The first question is which part of the Singapore market I actually want to own.

An STI ETF gives me exposure mainly to Singapore's largest companies. These companies tend to be more established and liquid, and many have a long history of paying dividends.

But the concentration is significant.

With DBS, OCBC and UOB accounting for more than half of the STI, buying the index also means making a sizeable allocation to Singapore financial stocks. Investors who want to understand this concentration in more detail can refer to our guide to the STI ETFs available in Singapore. 

If I already own these companies, I may prefer to look further down the market. This is where the iEdge Singapore Next 50 Index and some of the small and mid-cap focused EQDP funds become more interesting. 

Smaller companies may have greater room to grow and tend to receive less research coverage. However, they can also have lower trading liquidity, greater share-price volatility and, in some cases, weaker balance sheets.

I therefore would not see small and mid caps as automatically better than large caps. They simply offer a different set of opportunities and risks.

2. Do you want active or passive management?

The next decision is whether I want to follow an index or pay a manager to make active investment decisions.

An STI ETF is the clearest passive option.

It does not need to decide whether DBS looks attractive at today's share price. If DBS accounts for close to 30% of the index, the ETF will generally hold a similar weight.

The advantage is simplicity and lower fees.

An active fund has more flexibility. The manager can hold less of a company it considers expensive, invest more in stocks it believes are undervalued, or own companies outside the benchmark altogether.

That flexibility creates the potential to outperform, but also the potential to underperform.

And because active management generally costs more, the manager needs to generate enough additional return to overcome the higher fees. Investors considering this route can also refer to our guide on how to compare mutual funds in Singapore.

One important point is that ETF does not necessarily mean passive.

The CGS Fullgoal Singapore Next 50 Active ETF (Q50), for example, is an ETF but is actively managed.

The more useful distinction is therefore whether the portfolio follows an index mechanically or whether investment decisions are being made actively.

3. Do you want to choose the stocks yourself or leave it to a fund manager?

The final question is how involved I want to be.

A fund can be convenient if I want diversified Singapore exposure without having to research and monitor individual companies myself.

I am effectively paying the fund manager to decide which companies to own, how much to allocate to each one and when to make changes.

Building my own portfolio gives me greater control, but I have to make those decisions myself.

If I choose individual stocks, I would treat them as higher-conviction positions within my Opportunity Pot, with clear position limits. 

For investors taking this more hands-on approach, Beansprout Pro includes deeper Singapore stock research and the Opportunity Model Portfolio, which provides a reference for how we identify opportunities, size positions and decide when to add, reduce or exit.

A diversified Singapore equity fund or STI ETF could instead form part of my Growth Pot, alongside broader global equity exposure.

The choice does not have to be one or the other.

For example, I could use an STI ETF or active Singapore equity fund as the core of my Singapore allocation, while owning selected individual stocks where I have stronger conviction.

The important thing is to look at our portfolio as a whole.

Owning an STI ETF, a Singapore equity fund and three Singapore bank stocks may look diversified because I hold five investments. But all five could ultimately leave me with significant exposure to many of the same companies.

What would Beansprout do?

Our current view on Singapore remains constructive, with its structural growth themes still intact and valuations still below the 2007 peak. 

But I would still focus on how any new investment fits with what I already own, rather than investing simply because the market has performed well.

Within Beansprout's Four Pots of Wealth framework, Singapore stocks can serve different purposes. A diversified Singapore equity fund or STI ETF could form part of my Growth Pot, while higher-conviction individual stocks may sit within my Opportunity Pot.

If I had little exposure to Singapore stocks and wanted a simple way to own Singapore's largest companies, an STI ETF would remain one option I would consider.

However, if I already owned Singapore banks or an STI ETF, I may consider whether an actively managed fund could give me a different portfolio from the bank-heavy STI.

This is where Singapore EQDP funds, established active Singapore equity funds and the CGS Fullgoal Singapore Next 50 Active ETF (Q50) may be worth looking at.

And if we were willing to do the research ourselves, we would also consider building our own portfolio of individual Singapore stocks.

For those who prefer this approach, we share how we'd invest S$100,000 in Singapore stocks in Beansprout Pro, including our thinking behind each decision and what changes our view, so you can make more informed investment decisions of your own.

Ultimately, I would ask myself: What role do I want Singapore stocks to play in my portfolio? Do I want active or passive management? And do I want to choose the stocks myself or leave those decisions to someone else?

Once I answer these questions, it becomes much clearer which way of investing in Singapore stocks may fit my portfolio.

Which way of investing in Singapore stocks are you considering? Share your thoughts in the comments below or join the discussion in our Beansprout Telegram community.

Planning to invest in Singapore stocks or ETFs? Check out our guide to the best stock trading platforms in Singapore and best unit trust and mutual fund platform in Singapore.

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