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Hello Tiger Traders!

Here we are at WEEK 2 for our lucky draw campaign. In this week, a variety of ETFs will be promoted. ETFs tend to have high market capitalization, high liquidity, low fees, low commissions, and low risk so they are more suitable for conservative investors.

From November 15th to 21st, Commodity ETF, Bond ETFs, and Index ETF will be present on the wheel. For more information, please read the following brief introduction for each ETF.

Come on and be the lucky ones, the week 2 lucky draw is waiting for you. This week's reward value ranges from SGD 5 to USD 200. The five clients who cumulatively refer the largest number of account openings in a single week can enjoy up one year of commission free trading. Click here to join us now!

Gold ETF $GLD US$(O87.SI)$ 

The SPDR Gold Trust, managed by State Street, is one of the world's largest and most liquid ETFs for directly investing in gold. The ETF holds thousands of bars of gold that are securely stored in vaults in London and New York. Buying the SPDR Gold Trust is really one of the best ways to invest in gold. Even if you had the money to buy a giant gold bar, where are you going to store it? How would you keep it safe, insure it, or test it for purity? Physical gold is just too inconvenient to handle and that's why the SPDR Gold Trust already holds over 50 billion dollars of gold bars on behalf of investors around the world.

Singapore Government Bond $XT SingGovBond SG$(KV4.SI)$ 

Gold is the classic hedge against inflation and has a low correlation with other financial assets, making it a solid choice to diversify one's portfolio. What's more, the performance of gold over long periods of time is quite good; over the past 20 years the gold price has increased over 6X, equivalent to a compound annual return of around 9.7% a year. Why not add a little gold to your account as a hedge against higher inflation and uncertainty?

Singapore is one of the most stable, developed, and business friendly countries in the world. The Singapore Dollar is also a low-volatility, globally accepted currency. Engaging in international asset diversification doesn't just mean buying stocks in foreign companies, it also means holding assets that are denominated in other currencies. Owning assets across multiple currencies may reduce the overall volatility of an investment portfolio as FX rates fluctuate.

The Xtrackers Singapore Government Bond ETF gives investors convenient, simple exposure to Singapore Government bonds and the steady stream of coupon (interest) payments they give to their holders. Now of course government bonds aren't the most exciting investment, but historically during market corrections, investors who held bonds experienced comparatively smaller losses because bonds are much less volatile than stocks. Bonds are perfect for conservative investors who want to engage in diversification and protect themselves during selloffs.

So why not buy the bonds directly? Why go through an ETF? Well, the truth is that most bonds only trade in extremely large increments (1000 bonds per trade is often standard) so they tend to only be traded by institutions and very wealthy individuals who can spend tens of thousands of dollars on just one trade. In addition, the Xtrackers Singapore Government Bond ETF holds bonds of various durations, so investors obtain exposure to bonds that mature at many different times, which lowers the volatility of the ETF and its returns.

Overall, the XTrackers Singapore Government Bond ETF is a solid choice for conservative investors who are looking to increase their international bond holdings and diversify across currencies. Please note the ETF does not pay dividends and instead reinvests its interest payments into buying more bonds.

Chinese Government Bonds $ICBC CSOP CGB ETF S$(CYC.SI)$ 

If you don't invest in Chinese bonds, it's time to get on the train. Chinese bonds, especially government bonds, are much more attractive that bonds from Western governments. Consider the ten-year Chinese sovereign bond, it currently yields 3% while the US Treasury bond of equivalent duration yields a paltry 1.64% by comparisonL Does anyone really think the spread between the two countries' sovereign bonds should be that far apart? Does anyone really think either government will default on their obligations to investors?

The ICBC CSOP FTSE Chinese Government Bond Index ETF holds well over a billion dollars worth of Chinese Government bonds. Regarding the ETF sponsor, ICBC is the largest bank in the world by assets and one of China's notable investment managers. The bond in total holds 49 different Chinese Government bonds, so that its investors get diversified access to bonds maturing at many different dates. Unlike the Singapore Government Bond ETF, The ICBC CSOP ETF pays dividends annually and sports a dividend yield of approximately 3%.

Straits Times Index $Nikko AM STI ETF(G3B.SI)$ 

The Nikko AM STI Index ETF invests in the 30 largest stocks listed in Singapore. Southeast Asia's macroeconomy is growing rapidly as the region has a population of 650 million spread across eleven countries; Singapore is the region's key financial and business center.

By allocating capital to the STI Index ETF, investors are gaining access to multiple developing, high growth Asian markets, with risk mitigated by the diverse range of industries and countries that Singapore's top listed companies operate in. For example, one of the largest companies in the ETF is Jardine Matheson (J36), a massive pan-Asian conglomerate that invests in and operates a wide range of businesses such as leading Indonesian automaker Astra, the Mandarin Oriental Hotel, and even 7-11 stores in Hong Kong & Singapore. Jardine Matheson pays a 3% dividend.

Another major company in the ETF is the Ascendas Real Estate Investment Trust (A17U) which is the largest REIT in Singapore and one of the largest REITs in Asia by market capitalization. Ascendas owns 208 commercial properties across Singapore, Australia, the UK, and the US with a focus on logistics centers, warehouses, and offices. Ascendas pays a 5% dividend. The largest holding in the ETF is Southeast Asia's biggest financial services and banking company, DBS.

Overall, the Nikko AM STI Index ETF is a low volatility, solid dividend, conservative investment that gives shareholders profits from a wide range of high-quality business operating across Southeast Asia.

Singapore Bonds $ABF SG BOND ETF(A35.SI)$ 

The ABF Singapore Bond Fund tracks an index of government guaranteed bonds that are issued in Singapore. The ETF holds 42 different bonds that are issued by both the government of Singapore as well as state-run companies in Singapore, like the national metro operator and the country's public housing authority.

The bonds the ETF holds have coupons ranging between 1.7% and 4.2%. Because the ETF holds many bonds of different maturities and coupons, investors may enjoy low-volatility returns. The yield on these Singapore bonds may seem low, but in comparison to the ten-year US Treasury bond, which now yields 1.6% and high yield bonds in America, which yield around 5%, returns of around 2% to 4% from the government of Singapore are quite good in comparison.