EWS Profile
The iShares MSCI Singapore ETF is designed to track the performance of an index that reflects the large- and mid-cap segments of the Singapore equity market. The underlying index provides exposure to a broad range of Singaporean companies, focusing on those with significant market capitalization and liquidity. The ETF aims to represent the overall performance of Singapore's equity market, capturing the dynamics of its key sectors and industries.
To achieve its investment objectives, the fund typically allocates at least 80% of its assets to the component securities of the underlying index. This involves investing in equities that are part of the index or have similar economic characteristics. The fund's investment strategy includes maintaining a portfolio that mirrors the index's composition, ensuring alignment with the performance of the Singaporean equity market.
The index utilizes a capping methodology to manage concentration risk, limiting the weight of any single "group entity" to a maximum of 25% of the index's total weight. This approach helps to prevent excessive exposure to any one company or group, promoting a more balanced representation of the market. The fund's non-diversified nature means it focuses exclusively on Singaporean equities, without spreading investments across other regions or asset classes.
As part of iShares' international equity offerings, the iShares MSCI Singapore ETF provides investors with targeted exposure to the Singapore market, offering a strategic avenue for investing in one of Asia's key financial hubs. By focusing on large- and mid-cap companies within Singapore, the ETF seeks to deliver performance that reflects the growth and stability of the Singaporean economy, while adhering to a methodology that manages risk and ensures diversified representation within the market segment.
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