As Singapore’s economy flourishes, its exchange traded fund (ETF) iShares MSCI Singapore Index (EWS) feeds off the success. In fact, Singapore has the second-largest economy after Brunei in the Asia-Pacific region and is behind only Hong Kong and Taiwan in terms of economic well-being, says Preciosa Dumlao for AHN.

One explanation for Singapore’s economic growth is its location, as we previously mentioned. In addition, the country’s real estate market is in a "sweet spot," reports Carl Delfeld for ETF XRAY. Rising incomes, low interest rates and smaller deposit requirements have brought a wave of first-time buyers to Singapore, making it a property development dream, according to the Financial Times. The soaring demand for apartments and offices that caused an increase in construction helped the economy to grow at its fastest pace in two years, says Shamim Adam for Bloomberg.

When combined, all these factors – and more – have made the Singapore ETF a solid performer. EWS held up against the United State’s market drop last week, never falling below its long-term trend line. It’s up 20.1% year-to-date.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.