The Lion-OCBC Securities Singapore Low Carbon ETF, which invests in Singapore-affiliated companies with a low-carbon focus, has seen significant growth since its launch in April 2022. By July, the ETF had achieved a 50% total return, with an annualised return of 13% as of 6 August. This performance is indicative of the growing interest in sustainable investments, particularly among younger investors.
The ETF tracks the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index, which includes 19 Straits Times Index (STI) stocks, 13 Singapore-listed mid-caps, and eight Singapore-affiliated stocks listed abroad. Notably, the ETF’s expense ratio is capped at 0.45% per annum, making it an attractive option for cost-conscious investors.
Digital platforms and dollar cost averaging (DCA) plans have facilitated access to the ETF, contributing to its assets under management (AUM) growth. The ETF’s total net asset value has reached $63.5 million (S$86.3 million), with $7.4 million (S$10 million) in net inflows this year alone. The ETF’s diversified exposure and low-carbon tilt resonate with investors prioritising sustainability.
The ETF’s portfolio includes prominent Singapore-affiliated companies such as Sea, Trip.com Group, and iFAST Corporation. iFAST, in particular, has seen a significant net institutional inflow following its strong financial performance in the first half of 2025, with a 34.7% increase in net profit compared to the previous year.
As the ETF continues to attract investors, its focus on sustainability and accessibility through digital platforms positions it well for future growth.
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