Inside The Only Singapore Dollar ETF (FXSG)

RELATED QUOTES

SymbolPriceChange
EWS10.79+0.09
FXA76.711+0.301
CYB24.47+0.02
CNY40.92-0.33

As of now, currency ETF investing remains somewhat underappreciated by most. The space has just over three dozen funds, and a paltry amount in assets across all of the products in the segment.

This is starting to slowly change though, as more ETF providers have sought to launch new funds in the segment with some decent success. In fact, 11 currency ETFs have at least $100 million in assets while another five have at least $50 million under management, suggesting a decent level of interest in some corners of the space.

However, the vast majority of the capital currently invested in the space flows through into just a handful of G-10 currencies. These include widely-traded ones like the dollar, euro, yen, and the pound, which make up the vast majority of the current forex ETF market.

Beyond that, the currency ETF space has also moved beyond the G-10 and into other big economies and their currencies. These include Australia (FXA) and China (CYB and CNY), and now thanks to CurrencyShares, Singapore as well (read Can Anything Stop These Southeast Asia ETFs?).

CurrencyShares, a segment of Guggenheim Investments, has just debuted America’s first ETF that focuses on the Singaporean dollar, the Singapore Dollar Trust (:FXSG). The product looks to track the price of the Singaporean dollar, net of expenses, which come to 40 basis points a year.

FXSG/Singaporean Dollar in Focus

The ETF looks to provide long exposure to the Singaporean dollar, appreciating when the currency goes up against the U.S. dollar, and down when Singapore’s dollar declines against the American currency.

The currency is controlled by the Monetary Authority of Singapore (MAS), the nation’s central bank. This government authority has the ability to regulate all elements of the country’s monetary, financial, and banking programs.

The nation doesn’t utilize a pure free-float currency system though, as the MAS allows the Singaporean dollar to float in an undisclosed band against a secret basket of the country’s major trading partners. This is important for a small country that must import many natural resources, while it also helps to keep exports competitive against many of its main rivals in the region.

Singaporean Market

While Singapore is often overlooked by U.S. investors in favor of other markets in the region, the country, and its currency, are vital to Southeast Asia. Singapore represents the business heart of the region, and it is one of the most impressive growth stories over the past 50 years (read 5 ETFs for Countries with Highest Employment Rates).

Singapore was at one point just a small fishing village in a favorable location, but a series of pro-trade economic policies changed all that. Despite a total lack of natural resources, Singapore averaged growth of 8% from 1960-2010, catapulting the country into economic prominence.

Today, the average per-capita GDP is over $60,000 while exports are over $350 billion, putting the country into the top 15 in the world for both measures. Thanks to this and the relative lack of progress in its neighbors in the region, the currency of Singapore is arguably the most important—and stable—currency in the Southeast Asia region (read ETFs for the Most Competitive Countries on Earth).

This could make FXSG an interesting choice for investors seeking a relatively low volatility currency that targets this increasingly important region, although huge gains seem unlikely in this product. It could also make for a good choice for investors seeking to hedge out some currency risk in a portfolio, or for those seeking to go beyond China, Australia, and the G-10 in their currency investments.

Can It Succeed?

It is hard to say how this ETF will do in terms of accumulating assets. Currency ETFs are, generally speaking, less popular than other types of funds on the market so there will certainly be a bit of a struggle initially.

Still, the ETF is certainly priced right and its first mover advantage could help its quest in obtaining AUM. It also doesn’t hurt that the Singaporean dollar has done quite well—adding about 12% in the past five years—so this fund could surprise, although it could take a while to get some traction given how well stock markets have been performing lately.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Follow @Eric Dutram on Twitter

Read the analyst report on EWS

Read the analyst report on FXSG

Read the analyst report on FXA

Read the analyst report on CYB

Read the analyst report on CNY

Zacks Investment Research


 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

More From Zacks.com

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • BlackBerry to stop making signature smartphone; revenue slumps
    BlackBerry to stop making signature smartphone; revenue slumps Reuters - 3 minutes 5 seconds ago

    BlackBerry Ltd will outsource manufacturing of its once-core hardware, including its flagship smartphone, the Canadian company said on Wednesday as it reported another loss and sharp drop in revenue. The company also said Chief Financial Officer … More »

  • Germany denies preparing Deutsche Bank rescue plan
    Germany denies preparing Deutsche Bank rescue plan Reuters - 9 minutes ago

    The German government denied it was working on a rescue of Deutsche Bank (DBKGn.DE) as Germany's biggest lender boosted its balance sheet by selling its British insurance business on Wednesday. Deutsche is facing a $14 billion (£10.78 billion) fine … More »

  • Deutsche gets lift from $1.2 billion sale of Abbey Life to UK's Phoenix Reuters - 10 minutes ago

    Deutsche Bank AG (DBKGn.DE) has sold its British insurance business Abbey Life to Phoenix Group Holdings (PHNX.L) as it sheds non-core assets and reduces its balance sheet in an effort to reassure anxious investors and meet regulators' demands. … More »

  • Russian charged for flying drone over Polish PM's office AFP - 12 minutes ago

    Polish prosecutors said on Wednesday they had charged a Russian citizen with violating airspace laws for allegedly flying an unauthorised drone over the prime minister's office in Warsaw. Identified only ... … More »

  • Any ECB scheme to buy stocks could total 200 billion euros - ABN AMRO Reuters - 13 minutes ago

    The ECB is widely expected to extend its 1.7 trillion euro (£1.47 trillion) asset purchase programme given still low inflation and tepid economic growth, both of which the programme is designed to combat. In a note, ABN AMRO said the structure used … More »

  • AP Top Extended Financial Headlines at 7:44 a.m. EDT Associated Press - 14 minutes ago

    Wells Fargo says CEO John Stumpf and the executive who ran the bank's retail banking division will forfeit tens of millions of dollars in bonuses as the bank tries to stem a scandal over its sales practices... … More »

  • Moldova bans Ukraine meat over African swine fever fears Associated Press - 18 minutes ago

    Moldovan authorities are banning the import of live animals and meat from Ukraine due to fears of African swine fever. Agriculture Minister Eduard Grama says the ban begins Wednesday after several suspected ... … More »

  • Saudis soften oil stance on Iran but OPEC deal still elusive
    Saudis soften oil stance on Iran but OPEC deal still elusive Reuters - 18 minutes ago

    OPEC might still agree an oil output-limiting deal later this year as the economic problems of its de-facto leader Saudi Arabia force Riyadh to cede more ground to arch-rival Iran. Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria … More »

  • European stocks rebound awaiting OPEC decision
    European stocks rebound awaiting OPEC decision AFP News - 19 minutes ago

    European stock markets rebounded on Wednesday, brushing aside a broad retreat across Asia, as investors paid close attention to a meeting of OPEC to tackle a global supply glut. Around 1030 GMT, London's benchmark FTSE 100 index was up 0.7 percent. … More »

  • Old rivalries seen blocking OPEC deal to support oil price
    Old rivalries seen blocking OPEC deal to support oil price Associated Press - 21 minutes ago

    Prospects are dim for a deal among OPEC countries on Wednesday to freeze production and support oil prices, as disagreements persist between regional rivals Saudi Arabia and Iran. Officials from the Organization ... … More »

  • Credit Suisse CEO says bank relatively well positioned for Brexit
    Credit Suisse CEO says bank relatively well positioned for Brexit Reuters - 36 minutes ago

    Credit Suisse (CSGN.S) chief executive Tidjane Thiam said on Thursday that his bank is relatively well-placed to deal with the impact of Britain's vote to leave the European Union. Credit Suisse's EU investment banking business is run out of London … More »

  • Russian man suspected of breaking law with drone in Warsaw Associated Press - 42 minutes ago

    Warsaw prosecutors have officially informed a Russian citizen that he is suspected of violating Polish aviation law by flying a drone over Polish government buildings in Warsaw. In Poland, this is the ... … More »

  • BlackBerry revenue slumps; company outsources hardware
    BlackBerry revenue slumps; company outsources hardware Reuters - 44 minutes ago

    BlackBerry Ltd posted a 31.8 percent fall in second-quarter revenue and it said it would end all internal hardware development, including its well known smartphones. The Waterloo, Ontario-based company reported a net loss of $372 million, or 71 … More »

  • BlackBerry reports 2Q loss Associated Press - 47 minutes ago

    The Waterloo, Ontario-based company said it had a loss of 71 cents per share. Earnings, adjusted for non-recurring costs and stock option expense, came to less than 1 cent on a per-share basis. The average ... … More »

  • Honda reports another Takata airbag rupture in fatal Malaysia crash Reuters - 56 minutes ago

    The incident on Sept. 24 took place in Johor, a state in southern Malaysia, and involved a 2009 Honda City. The car was part of a product recall announced by Honda in June last year, that required the replacement of the Takata driver's front … More »

  • Iran says OPEC talks in Algeria pave way for a deal - SHANA Reuters - 1 hour 0 minutes ago

    DUBAI (Reuters) - Iran's oil minister said on Wednesday an informal meeting of the Organization of the Petroleum Exporting Countries in Algeria could pave the way for a deal to stabilise the oil market. ... … More »

  • In the lion's den, Draghi to defend ECB at Bundestag
    In the lion's den, Draghi to defend ECB at Bundestag Reuters - 1 hour 6 minutes ago

    BERLIN/FRANKFURT (Reuters) - European Central Bank President Mario Draghi faces a grilling on Wednesday from German lawmakers who say the ECB's super-loose monetary policy has damaged the 19-country currency bloc and fuelled the rise of the populist … More »

  • Exclusive: U.S. seeks accused Manila banker's help to crack Bangladesh heist
    Exclusive: U.S. seeks accused Manila banker's help to crack Bangladesh heist Reuters - 1 hour 8 minutes ago

    The FBI is negotiating with a former branch manager of a Philippines bank for information relating to $81 million that she handled after it was stolen from the Bangladesh central bank's account at the New York Federal Reserve, her lawyer said. … More »

  • German finance minister says not working on rescue plan for Deutsche Bank Reuters - 1 hour 16 minutes ago

    The German Finance Ministry on Wednesday denied a newspaper report that the government was working on a rescue plan for Deutsche Bank (DBKGn.DE) in case the lender would be unable to raise capital to pay for costly litigation. "This report is … More »

  • Tie-up of world's biggest beer makers clears final hurdle Associated Press - 1 hour 31 minutes ago

    A deal worth over $100 billion to combine the world's two biggest beer companies cleared its last major hurdle Wednesday when the shareholders of SABMiller approved the takeover by Budweiser maker Anheuser-Busch ... … More »

  • SABMiller shareholders comfortably back AB InBev takeover offer
    SABMiller shareholders comfortably back AB InBev takeover offer Reuters - 1 hour 35 minutes ago

    SABMiller (SAB.L) shareholders backed the brewer's $100-billion-plus takeover by rival Anheuser-Busch InBev (ABI.BR) by a large majority on Wednesday, paving the way for one of the biggest corporate mergers in history. The 79 billion pound deal was … More »

  • SABMiller shareholders back AB InBev takeover
    SABMiller shareholders back AB InBev takeover AFP News - 1 hour 35 minutes ago

    British brewer SABMiller's shareholders on Wednesday approved a mega-takeover by rival Anheuser-Busch InBev, clearing the way for the creation of the world's biggest beer company. … More »

  • BRIEF-Gamuda Bhd qtrly net profit 152.1 mln rgt vs 153.7 mln rgt Reuters - 1 hour 41 minutes ago

    Sept 28 (Reuters) - Gamuda Bhd * Qtrly net profit 152.1 million rgt versus 153.7 million rgt ; revenue 614.4 million rgt versus 623.3 million rgt * Board of directors does not recommend the payment of ... … More »

  • British Airways, Qatar Airways sign revenue-sharing deal
    British Airways, Qatar Airways sign revenue-sharing deal Reuters - 1 hour 44 minutes ago

    British Airways has signed a revenue-sharing agreement with Qatar Airways, allowing the pair to co-operate on scheduling and pricing, BA's owner IAG (ICAG.L) said in a statement on Wednesday. State-owned Qatar Airways owns 20 percent of IAG as a … More »

  • Renzi's reforms leave Italian economy and voters flat Reuters - 1 hour 47 minutes ago

    Prime Minister Matteo Renzi logs the progress of Italian government projects on big sheets of paper, keeping track of everything from work on a long-delayed motorway to simplifying the notoriously complex tax code. After 2-1/2 years in power, Renzi … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.151+0.010+7.09%
    N21.SI
    0.975+0.010+1.04%
    Y92.SI
    0.144+0.002+1.41%
    5DM.SI
    4.00+0.01+0.25%
    Z74.SI
    0.675+0.050+8.00%
    BMT.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.37+0.12+45.10%
    AZT.SI
    0.24+0.05+26.32%
    AWI.SI
    0.15+0.02+15.38%
    RF7.SI
    0.215+0.026+13.76%
    I07.SI
    0.13+0.01+8.33%
    5UE.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.112-0.028-20.00%
    BEH.SI
    0.66-0.05-7.04%
    BTE.SI
    0.32-0.02-5.88%
    P9D.SI
    0.225-0.010-4.26%
    PA3.SI
    0.23-0.01-4.17%
    K14.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3606+0.0011+0.08%
    USDSGD=X
    1.5261+0.0012+0.08%
    EURSGD=X
    1.7715+0.0013+0.07%
    GBPSGD=X
    73.9460+0.09+0.12%
    SGDJPY=X
    5.6978-0.0045-0.08%
    SGDHKD=X
    3.0382-0.0008-0.03%
    SGDMYR=X
    9,516.0420-12.4111-0.13%
    SGDIDR=X
    4.9044-0.0011-0.02%
    SGDCNY=X
    1.0429+0.0007+0.07%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,329.70-0.70-0.05%
    GCZ16.CMX
    19.22+0.05+0.29%
    SIZ16.CMX
    92.98-1.47-1.55%
    ^XAU
    2.18+0.01+0.60%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.11-0.02
    ^FVX
    1.56-0.03
    ^TNX
    2.28-0.05
    ^TYX