ОРЕАНДА-НОВОСТИ. Singapore’s 10 most active ETFs in the month of June comprised one gold ETF, one fixed-income ETF, three MSCI emerging-market index ETFs, two China ETFs, one Korean ETF, one Straits Times Index (STI) ETF and one European ETF.

The five most active ETFs during the month were: SPDR® Gold Shares ETF, SPDR® Straits Times Index ETF, iShares MSCI India Index ETF, iShares Barclays Capital USD Asia High Yield Bond Index ETF, and db x-trackers MSCI Indonesia Index UCITS ETF.

During the month of June, these 10 most active ETFs averaged a total return of 0.6%, taking the total return in the year thus far to 12.4%. Their average one-year and three-year total returns were -7.2% and 11.1% respectively.

Due to gold’s status as a haven asset during periods of market volatility, investors flocked to bullion after Britain voted to leave the European Union, the Federal Reserve pared its expectations for further interest rate hikes this year, and China’s slowing economy continued to weigh on global growth.

The price of the metal has jumped 24% in 2016, the best start to a year in four decades, while turnover in the SPDR® Gold Shares ETF has more than doubled year-over-year to S$81.2 million in June. This ETF has also generated the highest total return of 6.3% in the month of June.

In line with increasing investor appetite for lower risk assets, fixed-income ETFs have also attracted attention. Turnover in the iShares Barclays Capital USD Asia High Yield Bond Index ETF has more than tripled YoY in June to S$13.7 million.

As for the region’s emerging markets, Indonesian stocks entered a bull market earlier this week, a day after the government passed a tax amnesty bill. The bill – to be implemented this month for a maximum of nine months – is expected to draw 560 trillion rupiah (US$42.5 billion) in funds back to the country. About 30% is estimated to flow into government coffers, which President Joko Widodo hopes will help fund the country’s widening budget deficit.

Turnover in the db x-trackers MSCI Indonesia Index UCITS ETF surged 57.7% YoY to S$12.0 million in June. This ETF was also the second-best performer, posting a total return of 6.2% during the month.

In Singapore, turnover in the SPDR® Straits Times Index ETF rose 10.8% YoY to S$32.9 million in June. It registered a total return of 1.4%, the fourth-best performing ETF during the month.

Meanwhile, the db x-trackers MSCI Europe Index UCITS ETF (DR) was the ninth-most active ETF in the month of June, with turnover jumping more than 18-fold YoY to S$6.1 million. European shares have been volatile in the run-up to and in the aftermath of the UK’s EU referendum, with trading volumes reaching records.

After rising as much as 8.1% from a three-month low on 14 June through 23 June – the day of the referendum,  the Stoxx Europe 600 Index tumbled 11% over the next two sessions after the Brexit vote. Since then, European shares have rebounded as investor concerns over the long-term impact of Brexit eased and Governor Mark Carney said the Bank of England could loosen policy in the coming months.

June Performances

The 10 most active ETFs on SGX in the month of June were SPDR® Gold Shares, SPDR® Straits Times Index ETF, iShares MSCI India Index ETF, iShares Barclays Capital USD Asia High Yield Bond Index ETF, db x-trackers MSCI Indonesia Index UCITS ETF, db x-trackers FTSE China 50 UCITS ETF (DR), db x-trackers MSCI China Index UCITS ETF (DR), db x-trackers MSCI Korea UCITS Index ETF (DR), db x-trackers MSCI Europe Index UCITS ETF (DR), and db x-trackers MSCI Thailand Index UCITS ETF (DR). 

The above-mentioned ETFs saw a 44.5% YoY increase in turnover for the month, increasing from S$140.7 million in June 2015 to S$203.3 million in the same period this year. This brings the total 12-month turnover to S$1.9 billion.

The 10 most active ETFs in June 2016 are detailed below in Singapore dollars and sorted by MTD turnover.