News
September 23, 2025
SGX launches two new indexes to boost demand and interest
SINGAPORE: Funds can now track listed companies on the Singapore Exchange (SGX) more easily, thanks to two new indexes: the iEdge Singapore Next 50 Index and iEdge Singapore Next 50 Liquidity Weighted Index. Read full story
Singapore Exchange (SGX) has unveiled two new indexes designed to make it simpler for investors to follow the performance of companies listed on the exchange. The iEdge Singapore Next 50 Index and the iEdge Singapore Next 50 Liquidity Weighted Index are poised to boost demand and interest in a wider range of SGX-listed businesses.
The introduction of these indexes provides a more granular view of the Singaporean market. Rather than solely focusing on the largest and most established companies, these new benchmarks shine a spotlight on the next tier of promising businesses. This allows investors to diversify their portfolios and potentially tap into growth opportunities beyond the usual blue-chip stocks.
The iEdge Singapore Next 50 Index tracks the performance of the 50 largest companies listed on the SGX, excluding the existing constituents of the iEdge Singapore 50 Index, which represents the top 50. This ensures that the new index captures a distinct segment of the market, offering a clear picture of how these "next-in-line" companies are performing collectively.
Adding to the versatility, the iEdge Singapore Next 50 Liquidity Weighted Index takes liquidity into account. This means the index gives greater weight to companies whose shares are actively traded, reflecting their ease of buying and selling. This liquidity weighting is crucial for fund managers and institutional investors who require the ability to quickly adjust their positions. The liquidity-weighted approach also helps to mitigate potential market impact when large volumes of shares are traded.
The launch of these indexes is expected to be particularly beneficial for fund managers looking to create new investment products, such as exchange-traded funds (ETFs), that target this segment of the Singaporean market. By providing a clear and easily trackable benchmark, the new indexes can facilitate the development of investment vehicles that cater to both retail and institutional investors. This, in turn, could lead to increased trading volumes and greater overall interest in SGX-listed companies. The move signals the SGX's commitment to providing a comprehensive and dynamic marketplace for investors.
The introduction of these indexes provides a more granular view of the Singaporean market. Rather than solely focusing on the largest and most established companies, these new benchmarks shine a spotlight on the next tier of promising businesses. This allows investors to diversify their portfolios and potentially tap into growth opportunities beyond the usual blue-chip stocks.
The iEdge Singapore Next 50 Index tracks the performance of the 50 largest companies listed on the SGX, excluding the existing constituents of the iEdge Singapore 50 Index, which represents the top 50. This ensures that the new index captures a distinct segment of the market, offering a clear picture of how these "next-in-line" companies are performing collectively.
Adding to the versatility, the iEdge Singapore Next 50 Liquidity Weighted Index takes liquidity into account. This means the index gives greater weight to companies whose shares are actively traded, reflecting their ease of buying and selling. This liquidity weighting is crucial for fund managers and institutional investors who require the ability to quickly adjust their positions. The liquidity-weighted approach also helps to mitigate potential market impact when large volumes of shares are traded.
The launch of these indexes is expected to be particularly beneficial for fund managers looking to create new investment products, such as exchange-traded funds (ETFs), that target this segment of the Singaporean market. By providing a clear and easily trackable benchmark, the new indexes can facilitate the development of investment vehicles that cater to both retail and institutional investors. This, in turn, could lead to increased trading volumes and greater overall interest in SGX-listed companies. The move signals the SGX's commitment to providing a comprehensive and dynamic marketplace for investors.
Category:
Business