US-listed active ETFs: Easier access on the cards?

UNIT trusts are an established fixture in Singapore’s investment landscape. What’s the likelihood that they could be disrupted by the onset of actively managed exchange traded funds (ETFs)?

To date there is only one active ETF listed on the Singapore Exchange. But there are many brokerages here as well as robo platforms through which you can invest directly in an active ETF listed in New York and other jurisdictions.

Active ETFs offer advantages over traditional unit trusts, including ease of trading and transparency over the underlying holdings as well as the market price of the units. In traditional funds in Singapore, while valuation is done at the end of every business day, the net asset value price is made known only days later. Disclosure of fund holdings is even more infrequent; fact sheets are published monthly and disclose the top 10 holdings only.