Dear readers, SGX recently launched the iEdge Singapore Next 50 Index, an index that comprises the next 50 stocks after the Straits Times Index (STI) Constituent stocks.
I believe many retail investors would have, by publicity, get to know about iEdge Singapore Next 50 Index. While many will come to know that the Straits Times Index is making new highs, at around 4,430 right now, how many will know that currently the iEdge Singapore Next 50 index is at around 1,440?
While many will try to set target for the STI, how many will do so for IEdge Singapore Next 50 index?
I believe IEdge Singapore Next 50 index by itself, is a good concept: having two indices to track Singapore’s largest cap stocks and next largest cap stocks.
But beyond that, I think the proof is in the pudding. IEdge Singapore Next 50 index will only be useful if investors can realise some practical value (on the monetary sense of course) from this index. The IEdge Singapore Next 50 index will only be useful if there is an index ETF like the few ETFs tracking the STI which investors can invest in using their capital. Only then there will be vested interest, there will be discussion and real interest in this index rather than just by name.
I believe based on the authorities appointing fund manager as part of the capital injection into the Singapore stock markets, there should be a ETF soon for investors to start investing in and many others to start taking stock of this index.