Singapore Market at Record Highs: From Stocks and ETFs to Leveraged & Inverse ETPs

Singapore equities have staged a strong rally, with the market trading near record highs amid resilient economic growth, improving regional sentiment, and sustained institutional inflows.

For investors, this raises an important question: How should one position in today’s market environment?
Some investors may remain bullish and seek continued upside exposure. Others may prefer to hedge against volatility or trade shorter-term market swings. Today, investors have more ways than ever to access Singapore equities — from traditional long-term investments to tactical trading instruments designed for more active market participation.
Here’s a closer look at the key tools available.

1. Singapore Stocks: High-Conviction Opportunities
For investors with strong conviction in specific companies, investing directly in Singapore-listed stocks remains one of the most straightforward approaches.
Single-stock investing allows investors to target companies they believe can outperform the broader market.
Popular Singapore stocks often include DBS Group Holdings, OCBC, UOB, Singtel, SGX, and CapitaLand Integrated Commercial Trust.

Investing directly in stocks may offer:

• Higher upside potential
• Dividend income opportunities
• Greater control over portfolio allocation

However, stock-specific investing also carries company-specific risks and requires investors to monitor earnings, news flow, and market developments closely.

2. STI ETFs: Simple & Diversified Exposure
For investors seeking broad exposure to Singapore equities without selecting individual stocks, STI ETFs remain a popular option.
These ETFs track the Straits Times Index (STI), which comprises 30 of Singapore’s largest and most liquid companies.
The STI is heavily weighted towards Banks, Property-related companies and Telecommunications.

Two of the most actively traded STI ETFs include SPDR® STI ETF (ES3) and Amova AM STI ETF (G3B).
Key characteristics of STI ETFs:

• Diversified exposure
• Semi-annual dividend distributions
• Lower maintenance for long-term investors
• Suitable for passive investing strategies

They are commonly used by investors seeking long-term exposure to Singapore’s equity market.

3. MSCI Singapore Futures: Leveraged Market Exposure
More active traders may turn to SGX MSCI Singapore Index Futures (SiMSCI Futures). Unlike the STI, the MSCI Singapore Index includes exposure to internationally listed companies with Singapore links, such as Sea Ltd and Grab Holdings
As a result, the MSCI Singapore Index tends to exhibit:

• Higher growth exposure
• Greater volatility
• Lower dividend focus compared to the STI
• Futures contracts are commonly used for:
• Tactical trading
• Event-driven positioning
• Portfolio hedging
• Leveraged exposure

Importantly, futures also allow investors to trade both rising and falling markets.
However, futures trading may involve:

• Margin requirements
• Contract rollover considerations
• Higher complexity

As such, they are generally more suitable for experienced or active traders.

4. Phillip-Nova MSCI Singapore Daily Leveraged & Inverse ETPs
Singapore investors today also have access to exchange-traded products (ETPs) designed for tactical trading strategies.
These include:
Phillip-Nova MSCI Singapore Daily (2X) Leveraged ETP
SGX Codes: LSS (SGD) | LSU (USD)
The product aims to deliver approximately 2× the daily performance of the MSCI Singapore Index.
This may appeal to traders seeking amplified exposure during periods of strong market momentum.

Phillip-Nova MSCI Singapore Daily (-1X) Inverse ETP
SGX Codes: SSS (SGD) | SSU (USD)
The product aims to deliver the inverse daily performance of the MSCI Singapore Index.
This allows traders to:
Express bearish market views
Hedge against short-term downside risks
Potentially benefit during market pullbacks

Understanding Daily Reset & Compounding Effects
Leveraged and inverse ETPs are designed to achieve their objectives on a daily basis. Over longer holding periods, returns may differ significantly from simply multiplying the benchmark return by 2× or -1×. Performance becomes path-dependent due to compounding effects.
For example:
In trending markets, compounding may work favourably. In volatile or range-bound markets, performance decay may occur

As such, leveraged and inverse ETPs are generally considered tactical trading tools rather than long-term buy-and-hold investments.

总结洞察：杠杆与反向ETF丰富投资工具箱

Singapore’s equity market continues to offer opportunities for both investors and traders.

While some market participants may remain optimistic about further upside, others may prefer to hedge against volatility after the market’s strong rally.

Today’s market environment is no longer limited to traditional buy-and-hold investing. With the availability of stocks, ETFs, futures, and leveraged & inverse ETPs, investors now have a broader toolkit to express different market views and trading strategies.

Among these tools, Phillip Nova’s MSCI Singapore Leveraged & Inverse (L&I) ETPs fill a useful gap between cash equities/ETFs and futures: listed, easily accessible tactical instruments for expressing a market view or implementing a hedge when short-selling or derivatives access is constrained.

Used correctly — with awareness of daily reset and SIP suitability — they can improve execution flexibility for both retail and professional traders.