If you invested in SGX-listed ETFs in 2025, you were part of a much bigger story. Over the year, exchange-traded funds listed on the Singapore Exchange attracted about US$2.4 billion (S$3.2 billion) in net inflows—one of the strongest years on record.
That figure isn’t just a headline number. It reflects how Singapore retail investors are changing the way they invest: favouring simplicity over stock-picking, diversification over concentration, and steady income alongside growth.
In this article, we break down what drove the surge, which ETFs stood out, and—most importantly—what this means for everyday investors in Singapore planning their portfolios.
What exactly happened in 2025?
In simple terms, more money flowed into SGX-listed ETFs than flowed out—and by a wide margin.
- Net inflows: US$2.4 billion
- Total AUM: ~US$4.2 billion by year-end
- Trading activity: Daily turnover hit multi-year highs, improving liquidity
To put this in perspective, the ETF market in Singapore was once seen as small compared with the US or Hong Kong. But 2025 showed that ETFs are no longer a niche product for local investors.
A growing range of funds—covering equities, bonds, commodities, and income strategies—made it easier for investors to build diversified portfolios without buying dozens of individual securities.
Why Singapore investors turned to ETFs
1. Uncertain markets made diversification attractive
Global markets in 2025 were anything but calm. Interest rates stayed elevated, geopolitics remained tense, and equity markets swung between optimism and caution.
For a Singaporean investor with savings in:
- CPF-OA and CPF-SA
- A bank savings account
- A small stock portfolio
ETFs offered a middle ground—more growth potential than cash, but less concentration risk than buying a few individual stocks.
Instead of choosing between DBS, Apple, or Tencent, an investor could buy one ETF and gain exposure to dozens or hundreds of companies at once.
2. Gold ETFs shone as safe havens
One of the standout performers in 2025 was gold ETFs.
As global uncertainty persisted, investors used gold as:
- A hedge against inflation
- Protection during equity market volatility
- A portfolio stabiliser
For example, a Singapore investor worried about overexposure to equities could allocate 10–15% of their portfolio to a gold ETF listed on SGX, instead of buying physical gold or overseas funds.
This convenience—and lower cost—helped gold ETFs attract significant inflows.
3. Income-seeking investors loved dividend ETFs
Singapore investors are well-known for valuing steady income, especially:
- Pre-retirees
- Retirees
- CPF Life supplement seekers
In 2025, dividend-paying ETFs were among the most popular on SGX. These included funds focused on:
- Singapore REITs
- Asia-Pacific high-dividend stocks
- Multi-asset income strategies
Example: Instead of buying five different REITs and monitoring each one, an investor could buy a REIT-focused ETF that spreads risk across malls, offices, logistics, and data centres.
Monthly or quarterly distributions made these ETFs particularly appealing in a higher interest rate environment.
The role of robo-advisers and regular savings plans
Another big driver of ETF inflows was automation.
Robo-advisers and broker platforms increasingly:
- Use ETFs as core building blocks
- Offer regular savings plans (RSPs)
- Rebalance portfolios automatically
For a young working adult in Singapore, this could look like:
- Investing S$500 every month into a globally diversified ETF portfolio
- Using dollar-cost averaging to reduce timing risk
- Letting automation handle rebalancing
Over time, thousands of these small monthly investments added up to billions in ETF inflows.
Liquidity improved—and that matters
One concern investors sometimes have about SGX-listed ETFs is liquidity. In 2025, that concern eased.
- Average daily trading turnover rose sharply
- Bid-ask spreads tightened
- Market makers became more active
This meant investors could:
- Enter and exit positions more easily
- Trade larger amounts with less price impact
- Feel more confident using ETFs for both long-term investing and tactical moves
Liquidity improvements reinforced a virtuous cycle: more investors → more trading → better liquidity → even more investors.
How SGX-listed ETFs fit into a Singapore portfolio
Let’s look at a few relatable scenarios.
Scenario 1: The young professional (age 28)
- Goal: Long-term growth
- Risk tolerance: Moderate to high
Possible ETF mix:
- Global equity ETF for growth
- Asia ex-Japan ETF for regional exposure
- Small allocation to bonds or gold for stability
This investor benefits from low fees, diversification, and simplicity.
Scenario 2: The mid-career parent (age 42)
- Goal: Balance growth and income
- Risk tolerance: Moderate
Possible ETF mix:
- Singapore equity ETF
- REIT ETF for income
- Global bond ETF for stability
ETFs reduce the need to actively manage multiple individual stocks while still providing regular income.
Scenario 3: The retiree (age 65)
- Goal: Stable income and capital preservation
- Risk tolerance: Low to moderate
Possible ETF mix:
- High-dividend equity ETF
- Bond ETF
- Small gold allocation
Instead of chasing yield from risky individual stocks, ETFs help spread risk across many issuers.
Costs: the quiet advantage of ETFs
One reason ETFs continue to gain popularity is cost efficiency.
Compared with actively managed funds, ETFs typically offer:
- Lower management fees
- No sales charges (when bought via brokers)
- Transparent holdings
Over decades, saving even 0.5% per year in fees can make a meaningful difference to long-term returns—especially for CPF-linked or retirement portfolios.
Risks investors should still understand
ETFs are not risk-free. Singapore investors should keep in mind:
- Market risk: ETFs rise and fall with their underlying assets
- Currency risk: Many ETFs hold overseas assets
- Sector concentration: Some thematic ETFs can be volatile
The key is alignment: choose ETFs that match your time horizon, income needs, and risk tolerance.
What 2025 tells us about the future of SGX-listed ETFs
The record inflows of 2025 suggest a few clear trends:
- ETFs are becoming mainstream in Singapore
- Income-focused products will remain popular
- Gold and defensive assets will continue to play a role
- Automation and regular investing will drive steady growth
As more products launch and liquidity improves further, SGX-listed ETFs are likely to become an even bigger part of how Singaporeans invest.
Final thoughts
The US$2.4 billion in net inflows into SGX-listed ETFs in 2025 isn’t just a statistic—it’s a signal.
It shows that retail investors in Singapore are:
- Thinking long term
- Embracing diversification
- Using ETFs as practical, cost-effective tools
Whether you’re investing S$300 a month or managing a six-figure portfolio, SGX-listed ETFs now offer a flexible, accessible way to participate in global markets—without overcomplicating your financial life.