The time is ripe for ETFs on the mid and small-cap segments
Exchange-traded funds on both indices would benefit retail investors in many ways
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SINCE the Monetary Authority of Singapore’s Equity Market Development Programme (EQDP) is aimed at uplifting the mid and small-cap sectors, here’s a thought – how about some enterprising provider of exchange-traded funds (ETFs) consider introducing ETFs on two market indices that have been around for years and could be the benchmarks for any future unit trusts to beat, namely the FTSE ST Mid Cap and FTSE ST Small Cap indices?
It would be fair to say that other than the FTSE Straits Times Index (STI), most investors are unfamiliar with its mid-cap and small-cap stablemates.
According to the Singapore Exchange (SGX), the Mid Cap Index “is a market capitalisation weighted index that tracks the performance of the next top 50 companies after the 30 STI constituents’’.
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