An ETF in Singapore is a fund that trades on SGX like a stock and holds a basket of companies in one purchase. For most beginners the natural starting point is an STI ETF, which tracks the 30 largest companies on the exchange in a single trade. You buy ETFs through an online broker in Singapore just like shares, you can start small through a Regular Savings Plan, and annual costs are low, around 0.3% for STI ETFs. This guide covers what to buy, how to buy it, and what it costs.
What Is an ETF, and Why Do Singapore Investors Use Them?
An exchange-traded fund pools money from many investors to buy a basket of assets, then lists itself on an exchange so you can trade it like a single stock. The appeal is diversification at low cost. Instead of buying DBS, OCBC, UOB and 27 other names one by one, a single STI ETF holds all 30 for you. Because most ETFs simply track an index rather than pay a manager to pick stocks, their fees are low, which is why ETF investment has become a default for hands-off investors.
Which ETFs Can You Buy in Singapore?
Singapore investors generally choose from three groups: local equity ETFs, bond ETFs, and global ETFs bought through a local broker. The table below shows common examples.
| Type | What it holds | Example |
|---|---|---|
| Local equity (STI) | The 30 largest SGX-listed companies | SPDR STI ETF (ES3); Nikko AM STI ETF (G3B) |
| Bond | Singapore government and quasi-government bonds | ABF Singapore Bond Index Fund |
| Global / US | Broad world or US index exposure | S&P 500 and world index ETFs via your broker |
Common ETF categories for Singapore investors; tickers shown are examples, not recommendations.
How Do You Buy ETFs in Singapore?
You buy an ETF the same way you buy a share. Open and fund a brokerage account with a MAS-regulated broker, search for the ETF by name or SGX code, then place a market or limit order. You have two styles to choose from. A lump-sum purchase puts a set amount in at once, while a Regular Savings Plan invests a fixed sum each month and buys units automatically, which spreads your entry price over time. The RSP route is popular precisely because it lets you start an ETF in Singapore position with as little as SGD 100 a month.
What Do ETFs Cost?
There are two cost layers. The first is the expense ratio, an annual fee charged by the fund, which is typically around 0.3% for STI ETFs and lower for some large global index ETFs. The second is what your broker charges to buy and sell, the same commission and minimum fee that apply to any trade. Several digital brokers now offer low or zero commission; Moomoo, regulated by the Monetary Authority of Singapore (MAS), offers $0 commission on SGX trades for the first year for new users, which is an introductory offer rather than a permanent rate. US stock trades are commission-free on an ongoing basis. One nuance for global ETFs: US-listed funds apply a 30% withholding tax on dividends for Singapore investors, which is why some choose Irish-domiciled (UCITS) ETFs that cut this to 15%.
ETFs vs Individual Stocks: Which Suits a Beginner?
Both have a place. Individual stocks give you control and the chance to outperform, but they need research and carry single-company risk. An ETF hands you a whole market in one trade, which lowers the odds of a single bad pick sinking your portfolio. Many beginners start with an STI ETF as a core holding, then add a few individual index fund or blue-chip positions once they understand what they own. There is no rule that says you must pick one approach.
Where a Modern Broker Helps
A platform with a wide product range makes ETF investing simpler, since you can hold local STI ETFs alongside US and other global ETFs in one account rather than opening several. Moomoo, regulated by MAS, offers that range plus tools built specifically for choosing ETFs. Its index categories and a real-time market heatmap let you screen ETFs by index and see at a glance which parts of the market are moving, so you can narrow a long list quickly. Its thematic ETF rankings group funds by theme, such as AI, semiconductors and gold, which helps if you want exposure to a specific trend rather than the whole market. And its ETF type classifications sort funds by structure, from plain index ETFs to single-stock, leveraged and inverse ones.
A word of caution on that last group: leveraged, inverse and single-stock ETFs are complex, higher-risk products built for short holding periods, and they are not suitable for most beginners. MAS treats several of them as specified investment products for that reason. Used carefully by experienced investors they have a place, but a first ETF portfolio is usually better built on broad index funds. Moomoo’s AI summaries and in-app learning resources help you tell the two apart before you commit.
Frequently Asked Questions
What is the best ETF in Singapore for beginners?
There is no single best ETF. For local exposure, an STI ETF such as the SPDR STI ETF or Nikko AM STI ETF is a common core holding. For broader diversification, a global or S&P 500 index ETF is often added. The right mix depends on your goals and time horizon.
Can I buy a S&P 500 ETF from Singapore?
Yes. Singapore investors can buy US and global ETFs, including S&P 500 trackers, through a local broker that offers US market access. Watch the FX cost and the 30% US dividend withholding tax, which an Irish-domiciled version can reduce to 15%.
How much do I need to start investing in ETFs?
You can start from around SGD 100 a month through a Regular Savings Plan, or buy a single unit or board lot of an ETF outright. As with any small trade, keep an eye on the minimum brokerage fee, since it has a larger effect on small amounts.
Are ETFs safe?
Broad index ETFs spread risk across many holdings, which makes them less volatile than a single stock, but they still rise and fall with the market they track. Specialised ETFs such as leveraged and inverse ones are far riskier. In Singapore, ETFs are traded on SGX and the brokers and fund managers involved are regulated by MAS, though that does not remove ordinary market risk.
References
Monetary Authority of Singapore. (n.d.). Collective investment schemes and specified investment products. https://www.mas.gov.sg
Singapore Exchange. (n.d.). Exchange traded funds on SGX. https://www.sgx.com
MoneySense. (n.d.). Guide to ETFs: understanding exchange traded funds. https://www.moneysense.gov.sg
Information accurate as of Q3 2026.