ETF Trends
ETF Trends

Singapore is a dynamic developing country, using different tactics to boost its economy. Investors may access this top Asian economy through the country-related exchange traded fund (ETF).

According to Carl Delfeld for InvestmentU, there are some compelling reasons why investors should consider Singapore:

  • Growth. Singapore was the world’s fastest-growing economy in the first half of 2010, with GDP surging 17.9%.
  • Economics. Singapore relies on imports but the country has also maintained a trade surplus. Additionally, Singapore has a balanced budget and a stable currency.
  • A Different Type of Economy. Around 70% of Singapore’s economy is in the  financial and service industries. The Southeast Asian country is also transitioning to a more research and development-based economy.
  • Southeast Asia Hub. Singapore boasts the busiest transport hub in the region.
  • Politics. Politics in Singapore is maturing into a democratically freer climate.
  • Regulations. The country’s accounting rules and regulations are among the most conservative.
  • Resorts. Singapore launched two large casino resorts that may produce $4 billion, or 20% less than Vegas, this year.

Information technology is one of Singapore’s most important industrys, accounting for 7.7% of Singapore’s GDP in 2009, said Ronnie Tay on Gov Monitor. Singapore is host to the Asia HQ and engineering centers of 26 foreign infocomm start-ups. Tay focuses on two objectives that would help companies and organizations maintain a competitive edge. Companies should bridge innovation and demand to maximize potential gains, and companies should be able to quickly scale innovation to market opportunities. [5 ETFs for the World’s Competitive Nations.]

Singapore is home to a tech-savvy population that relies on advanced infocomm infrastructure.

For more information on Singapore, visit our Singapore category.

  • iShares MSCI Singapore Index (NYSEArca: EWS) contains 12% exposure to telecommunications.

  • PowerShares FTSE RAFI Asia Pacific ex-Japan (NYSEArca: PAF) has 6% exposure to Singapore, along with 38.6% in Australia and 26.7% in Korea; PAF also has 7.2% allocated to technology and 4.5% toward telecommunications.

Asia ETFs

Max Chen contributed to this article.

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.