Martin Lee @ Sg
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Dual Currency Trading for SGX ETFs

On 15 June, Singapore Exchange (SGX) will have dual currency trading for selected ETFs. This will make it easier for investors to trade foreign-currency denominated ETFs as they can now buy it in Singapore dollars and not deal with the hassle of converting currencies.

This will help provide investors with trading flexibility in accessing ETFs denominated in a foreign currency.

The following ETFs from BlackRock’s iShares and CIMB-Principal Asset Management will have a secondary trading counter in Singapore dollars:

  • CIMB S&P Ethical Asia Pacific Dividend ETF
  • iShares Barclays Capital Asia Local Currency 1-3 Year Bond Index ETF
  • iShares Barclays Capital Asia Local Currency Bond Index ETF
  • iShares Barclays Capitial USD Asia High Yield Bond Index ETF
  • iShares J.P. Morgan USD Asia Credit Bond Index ETF
  • iShares MSCI India Index ETF

The ETFs will be fungible, meaning an investor can buy and/or sell the ETF in US or Singapore dollars regardless of the currency in which it was first bought and/or sold. All the above ETFs are cash based full replication ETFs.

In March 2012, SGX had first introduced dual currency trading for securities with Hutchison Port Holdings Trust as the first listed security to launch dual currency units.

This is really a nice move by SGX and I hope they can offer more dual currency securities/ETFs.

Leave a Comment:

Makky says 12 years ago

For such dual currency etf, if the Singapore dollar appreciate from the time we bought to the time we sold, would our profit be reduce?

    Martin Lee says 12 years ago

    Dear Makky,

    Buying ETFs in both currencies will yield similar results.

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