Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Why Singapore ETFs Have Appeal

By

As Asia continues to draw investor attention and witness stellar economic growth, Singapore and the ETFs that track the nation remain attractive. Here's how to gain access.

PrintPRINT
Editor's Note: This article was written by Kevin Grewal, editor of SmartStops.net.


As Asia continues to draw investor attention and witness stellar economic growth, Singapore and the exchange-traded funds (ETFs) that track the nation remain attractive, and for good reason.

In the first half of 2010, Singapore has seen stellar growth. According to government data released on Wednesday, Singapore's economy grew by 18.1% compared to the same period as last year, primarily buoyed by increased tourism and strong exports. As for the remainder of 2010, Singapore's economy is expected to continue its growth and will likely post overall growth of 13%-15% for the entire year.

Singapore is expected to reap the benefits of the growth expected by other Asian nations and industrial countries. In particularly, Singapore is expected to benefit from the V-shaped economic recovery that is being seen in Asia. Of all its exports, nearly 80% are traded within Asia, primarily to China, Malaysia, Indonesia, and Japan -- nations that continue to demand more goods from Singapore. In fact, in June, exports to China and Japan jumped 39% and 75%, respectively, from the previous month.

To further add to Singapore's appeal, private consumption is expected to increase as a result of improved employment, rising incomes, and the income effect of higher equity and property prices. Additionally, business confidence in the Asian nation is on the rise, which is expected to give business investment a boost. In particularly, financial and business services are expected to see growth, and construction investment should be supported by government-funded infrastructure projects.

Lastly, Singapore has tamed its inflationary worries by revaluing its currency. After allowing the Singapore dollar to appreciate and be revalued, inflation is anticipated to be between 2.5% to 3.5% for 2010 and shouldn't be of much concern.

In a nutshell, Singapore remains appealing and will likely flourish in the coming months. Some ways to gain access to the Asian nation include:
  • iShares MSCI Singapore Index (EWS)

  • iShares FTSE EPRA/NAREIT Dev Asia Idx (IFAS), which allocates 12.6% of its assets to Singapore

  • WisdomTree Pacific ex-Japan Total Div (DND), which allocates 11.4% of its assets to Singapore

  • iShares S&P Asia 50 Index (AIA), which allocates 10.3% of its assets to Singapore
Although an opportunity seems to exist in Singapore, it's equally important to consider the inherent risks that are involved with investing in these equities. To help protect against these risks, the use of an exit strategy that identifies specific price points at which downward price pressure is likely to occur is important. Such a strategy can be found at www.SmartStops.net.

31 of the last 33 trades in the Grail ETF & Equity Investor newsletter have been profitable. Don't miss the next. Take a FREE 14 day trial today.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE