Top ETFs to watch in 2026

What is an ETF?

An exchange traded fund (ETF) is an investment product that tracks the performance of a group of assets, such as stocks, bonds, commodities, or a mix of these. It trades on an exchange like a stock, meaning you can buy and sell shares in the ETF throughout the trading day.

For traders, ETFs can be a way to access multiple markets quickly, diversify exposure, and take positions on entire sectors or themes without selecting individual assets.

Different types of ETFs

Equity ETFs 

Track a group of company stocks, often following an index such as the S&P 500 or Straits Times Index (STI). Useful for gaining exposure to broad markets or specific sectors.

Commodity ETFs 

Get access to commodities like gold, oil, or agricultural products. These can help traders take positions on commodity price movements without needing futures contracts.

Bond ETFs 

Hold baskets of government or corporate bonds. Traders might use them to position for changes in interest rates or economic conditions.

Sector ETFs 

Focus on industries like technology, healthcare, or energy. Popular with traders who want targeted exposure to sectors expected to outperform.

Thematic ETFs 

Invest in companies tied to specific trends, such as clean energy, artificial intelligence, or electric vehicles. These often appeal to traders seeking growth potential in emerging areas.

Why trade and invest in ETFs in 2026?

ETFs remain a leading choice for Singapore market participants, offering flexibility for traders and diversification for investors. Their ability to provide both broad market coverage and targeted sector exposure makes them relevant across strategies.

In 2026, global macroeconomic shifts, sector rotations, and technological breakthroughs are still expected to create opportunities for both trading and investing in ETFs:

• Sector leadership as industries like artificial intelligence, renewable energy, and defence are expected to continue attracting capital inflows.

• Commodity volatility to be driven by supply chain realignments, geopolitical tensions, and renewed demand from emerging markets.

• Interest rate dynamics are forecasted to keep shaping bond ETF performance as central banks balance inflation control with growth stability.

As Scott Dennis noted in his 2026 ETF Industry Outlook published on Advisor Perspectives, “as we look ahead to 2026, we anticipate continued innovation and expansion in the ETF space, offering investors an even broader array of choices and opportunities”.

For traders, ETF CFDs on IG Singapore allow tactical positioning — going long when expecting price appreciation or short when anticipating declines. 

For investors, ETFs invested through the IG Markets mobile app provide cost-efficient access to diversified portfolios, steady dividend streams, and exposure to long-term growth themes.

Risks of trading/ investing in ETFs

While ETFs offer diversification, they also carry risks:

• Market risk – the value of the ETF will move with its underlying assets.
• Tracking error – some ETFs may not perfectly follow the index or asset they aim to replicate.
• Liquidity risk – less popular ETFs can have wider bid-ask spreads.
• Leverage risk – leveraged ETFs amplify gains and losses, making them more volatile.

Understanding these risks can help you choose ETFs that align with your strategy and risk tolerance.

Top 3 ETFs for traders to watch

1. SPDR Gold Shares (GLD)
 

Net assets (February 2026): US$174 billion

About the ETF: SPDR Gold Shares (GLD) continues to rank among the most liquid ETFs worldwide, serving as a key instrument for Singaporeans seeking direct exposure to gold’s price action. 

As of the close of 6 February 2026, GLD traded at US$455.46, delivering a one-year gain of nearly 70%. The rally was driven by persistent inflationary pressures and sustained central bank demand for bullion.

Key information:

• Volatility profile: GLD’s intraday moves remain wide, offering scope for short-term scalping and momentum plays. Bollinger Bands and Relative Strength Index (RSI) remain popular tools for timing entries.

• Liquidity strength: With around 12.6 million shares changing hands daily, spreads are tight with slippage minimal, supporting active trading.

• Trend signals: MACD has shown bullish divergence since late 2025, while RSI hovered near 70 in January, reflecting strong momentum.

• Support/resistance: US$440 has acted as a firm floor, while US$460 is emerging as a ceiling. Breakouts often trigger heavy volume.

• Macro drivers: GLD remains sensitive to USD strength and US Federal Reserve policy shifts, making consumer price index (CPI) and rate announcements critical catalysts.

GLD is traded on both SGX (as GSD) and NYSE Arca. The ETF is accessible via IG’s Monetary Authority of Singapore (MAS)-recognised trading and investing platforms.

2. Lion-OCBC Securities Hang Seng TECH ETF (SGX:HST)
 

Net assets (February 2026): US$2.7 billion

About the ETF: Lion-OCBC Securities Hang Seng TECH ETF (HST) tracks the Hang Seng Tech Index, providing exposure to China’s leading tech firms. As of 6 February 2026, HST traded at S$0.85, reflecting a one-year gain of over 36%. The ETF remains a tactical play for traders positioning on China’s tech rebound and AI-driven growth cycle.

Key information:

• Sector drivers: Major holdings include Xiaomi (8.8%), NetEase (8.4%), Alibaba (7.6%), Tencent (7.8%), and JD.com (6.9%), all of which are benefiting from Beijing’s renewed push for innovation.

• Price range: With a 52-week band between S$0.72 and S$1.08, HST offers potential for swing trades and breakout setups.

• Liquidity: Daily turnover averages around 4.5 million units, providing sufficient depth for short-term strategies.

• Chart patterns: Bullish flags and descending triangles appear frequently, supporting pattern-based trading approaches.

• Event catalysts: Earnings and regulatory updates from China often spark sharp moves, which could be ideal for news-driven trades.

HST is SGX-listed, denominated in SGD, CPFIS (CPF Investment Scheme)-eligible, and available via IG Singapore’s trading platforms and investing mobile app.

3. Lion-Nomura Japan Active ETF (SGX:JJJ)
 

Net assets (February 2026): S$62.8 million

About the ETF: The Lion-Nomura Japan Active ETF (JJJ) is Singapore’s first AI-powered ETF, offering diversified exposure to Japanese equities such as Hitachi (5.9%), Asahi Group (6.6%), and Aeon (6.9%). 

As of 6 February 2026, JJJ closed at S$1.43, with a one-year gain of more than 36%. It remains attractive for traders seeking algorithm-driven rebalancing and sector rotation.

Key information:

• AI-driven allocation: Constituents are refreshed monthly using predictive models that track macro trends, earnings momentum, and valuations.

• Breakout setup: JJJ recently cleared S$1.40, with Bollinger Bands tightening — often a precursor to volatility expansion.

• Liquidity profile: With roughly 44,800 shares traded daily, JJJ offers sufficient turnover for tactical entries and exits.

• Relative strength: Comparing JJJ against the Nikkei 225 highlights divergence opportunities for traders.

• Arbitrage potential: Dual exposure to SGX and Tokyo hours supports cross-market arbitrage strategies.

JJJ is denominated in SGD and USD, giving traders flexibility in currency exposure. It’s also MAS-recognised, making it accessible to both retail and institutional participants.

Top 3 ETFs for investors to watch

1. iShares Core S&P 500 UCITS ETF (CSPX)

Net assets (February 2026): US$20.3 billion

About the ETF: The iShares Core S&P 500 UCITS ETF (CSPX) remains a cornerstone for investors seeking diversified exposure to the US equity market.

CSPX has been tracking the S&P 500 Index since March 2002, covering 500 of America’s largest companies across technology, healthcare, and consumer sectors. 

Other key information:

• Broad diversification: CSPX includes leaders like Microsoft (5%), Apple (7%), and Nvidia (7.6%), with the top 10 holdings making up ~37% of the fund.

• Tax efficiency: Ireland domicile reduces US dividend withholding tax for Singaporean investors.

• Low cost: Super low expense ratio of 0.07% keeps it among the cheapest ETFs available.

• Performance record: Over the past decade, CSPX has averaged ~15% annual returns.

• Quarterly rebalancing: Ensures alignment with S&P 500 changes and sector trends.

CSPX is listed on the London Stock Exchange and can be accessed via the IG Markets mobile app.

2. Amova-StraitsTrading Asia ex Japan REIT ETF (SGX:CFA)

Net assets (February 2026): S$687.2 million

About the ETF: The Amova-StraitsTrading Asia ex Japan REIT ETF is Singapore’s flagship regional REIT ETF, designed for income-focused investors. As of 6 February 2026, CFA traded at S$0.83, with a trailing dividend yield of around 5.3% and a one-year gain of over 16%.

Key information:

• Income generation: Quarterly payouts sourced from retail, industrial, and commercial REITs.

• Regional allocation: ~60% Singapore, ~18% Hong Kong, with exposure to Malaysia and Thailand.

• Top holdings: CapitaLand Integrated Commercial Trust (10.3%), CapitaLand Ascendas REIT (9.9%), and Link REIT (9.7%).

• Competitive cost: Expense ratio of 0.60% remains attractive for regional REIT exposure.

• Capital growth: Supported by rising property values and rental escalations in logistics and data centers.

CFA is listed on the SGX, denominated in SGD, and accessible via the IG Markets mobile app. 

The ETF is also CPFIS-approved, which means investors can use their CPF savings to invest. 

3. SPDR Straits Times Index ETF (SGX:ES3)
 

Net assets (February 2026): S$2.8 billion

About the ETF: The SPDR Straits Times Index ETF (SGX:ES3) offers direct exposure to Singapore’s economy. As of 6 February 2026, ES3 traded at S$5.02, with a one-year gain of around 27% and a three-year annualised return above 16%. It tracks the Straits Times Index (STI), comprising 30 of the largest and most liquid SGX-listed companies.

Key information:

• Local exposure: ES3’s top holdings include DBS (26%), OCBC (15%), and UOB (10%), reflecting Singapore’s banking strength.

• Dividend yield: Currently stands at around 3.6%, with semi-annual distributions from blue-chip firms.

• Market coverage: Represents roughly 70% of SGX’s total market capitalisation, making it a proxy for Singapore’s economy.

• Liquidity: Nearly one million shares traded daily, ensuring depth for both retail and institutional investors.

• Regular reviews: STI constituents are updated semi-annually to reflect market changes.

• Low expense ratio of 0.3% per annum

ES3 is MAS-recognised and CPFIS-approved, making it a potential choice for long-term investors building Singapore-centric portfolios. It may also be considered by those seeking dividend income with low volatility.

How to trade and invest in ETFs with IG Singapore

CFD trading
 

1. Create a live or demo account
2. Find an opportunity from one of our 5,400+ ETFs with our  market screener
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

Investing
 

1. Open an account via IG Markets Singapore app
2. Search for an ETF that you're watching on the app
3. Choose the ETF you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about ETFs

Footnotes: 
 

1 Yahoo! Finance, “GLD”, 2025  
2 Yahoo! Finance, “GLD”, 2025
3 Investing.com, “GLD”, 2025
4 Yahoo! Finance, “HST”, 2025
5 Lion Global Investors HST Fund Page
6 Yahoo! Finance, “HST”, 2025
7 Lion Global Investors JJJ Fund Page
8 Yahoo! Finance, “JJJ”, 2025
9 Lion Global Investors JJJ Fund Page
10 Yahoo! Finance, “JJJ”, 2025
11 Yahoo! Finance, “JJJ”, 2025
12 Yahoo! Finance, “CSPX”, 2025
13 iShares CSPX Holdings
14 iShares CSPX Fund Overview
15 iShares CSPX Fund Overview
16 iShares CSPX Fund Overview
17 Investing.com, “AMON”, 2025
18 Amova-StraitsTrading Asia ex Japan Fund Factsheet
19 Amova-StraitsTrading Asia ex Japan Fund Factsheet
20 Amova-StraitsTrading Asia ex Japan Fund Factsheet
21 SSGA ES3 Holdings
22 SSGA ES3 Holdings
23 Growbeansprout “ES3” Dividend Tracker
24 SSGA ES3 Holdings
25 Yahoo Finance ES3 ETF