Demystifying Exchanged Traded Fund (ETF)

This programme introduce introduces Exchange Traded Funds (ETFs) as flexible investment vehicles that combine the diversification of a fund with the liquidity of stocks. It explains how ETFs are created and traded, outlines the main types (by asset class, strategy, structure, and style), and highlights their key benefits such as cost efficiency, transparency, and accessibility. The presentation also discusses important evaluation metrics, common risks—including market, liquidity, and structural risks and the differences between global and Singapore-listed ETFs. Ultimately, it emphasizes that while ETFs are powerful tools for building diversified portfolios, careful selection and risk management are essential for successful investing.

Learning Outcome:

• Define what an ETF is and explain how it works, including the creation and redemption process and the roles of key parties involved
• Identify and differentiate between the main types of ETFs by asset class, strategy, structure, and style
• Evaluate ETFs using key metrics such as total expense ratio (TER), tracking error, liquidity, and assets under management (AUM)
• Recognize and manage the key risks associated with ETF investing, including market, liquidity, tracking, and structural risks
• Distinguish between global and local ETFs and understand the relevance of CPFIS- and SRS-approved ETFs for Singapore-based investors
• Apply ETF knowledge to construct diversified, cost-effective investment portfolios tailored to individual or client needs

Asynchronous
E-Learning

2 hours

• What is ETFs, Why ETFs
• How ETFs Work
• Types of ETFs?
• How to Evaluate an ETF?
• Key Risk of Investing in ETFs
• Global and Local ETFs
• CPFIS-Approved and SRS-Eligible ETFs