The State Street® SPDR® Straits Times Index ETF—A uniquely Singaporean fund
Singapore’s resilient economy and supportive policy backdrop are strengthening the case for local equities. Key drivers include a stable investment environment, strong banking sector performance, and improving growth expectations.
Singapore has long been seen as one of Asia’s leading markets due to its strategic location, robust infrastructure, business-friendly policies, and commitment to innovation. Further, its economy is underpinned by a diverse range of industries, including financial services, electronic manufacturing, biomedical sciences, and marine services while also offering growth opportunity through its burgeoning technology segment that is leading the way in areas like fintech, artificial intelligence, and e-commerce.
Recent developments have further bolstered the case for considering investing in the Singapore economy.
- A safe haven during uncertainty: Amid current geopolitical uncertainty, Singapore stands out as a source of stability outside the US. In 2025, the index delivered a total return of about 28.6%, ahead of the S&P 500’s 10.7% and the Nasdaq Composite’s 13.8%, in Singapore Dollar terms.1
- A strong banking industry: It is strongly positioned to capture the opportunity of growing wealth in Asia.
- MAS measures to develop the stock market: Monetary Authority of Singapore’s Equity Market Development Program budget allocation was increased earlier this year to S$6.5B to further improve investment and research capabilities in Singapore.2
- Growth predictions: Recent stronger-than-expected Singapore GDP growth and improving macroeconomic conditions have supported local equities.
The Straits Times Index (STI), a globally recognized benchmark viewed as a barometer of Singapore’s economy, hit 5000 points in February 2026, closed at 5,755.36 on 31 August, and is predicted to reach 5,850 by year end,3 which is leading investors to consider dedicated allocation to Singapore equity in their portfolios.
State Street Investment Management’s State Street® SPDR® Straits Times Index ETF (ES3) is Singapore’s first locally created ETF that provides investors a cost-effective, highly liquid4 way of gaining exposure to the STI and invest in the top 30 companies in Singapore.
Before we explore ES3 further, let’s look at its underlying index, STI.
The Straits Times Index: A benchmark built for income and resilience
Having been created shortly after Singapore’s birth as a nation, STI has tracked the growth of the Singapore economy for 60 years. Today, the STI tracks 30 of the largest and most liquid companies listed on the Singapore Exchange, and is considered the best indicator on the Singapore market.5
Additionally, unlike competing, broader indexes, it focuses on the largest and most liquid companies on the Singapore Exchange (SGX), targeting the companies most critical to the country’s economy and markets, avoiding the volatility of mid-cap stocks.
One market, one ETF, multiple benefits
Listed on the SGX under the ticker ES3, the State Street® SPDR® Straits Times Index ETF aims to closely mimic the performance of the STI. It is the largest Singapore equity ETF in the world and Singapore’s first locally created ETF.6
ES3 invests in a portfolio of Singapore firms, reflecting the local market's breadth and depth. For instance, the ETF has significant exposure to the financial sector with holdings in the country’s leading banks. The real estate segment, which includes prominent property developers and a top real estate investment trust, is also well represented, as are industrial and telecom names, consumer-related firms, and utility providers.
Gaining exposure to 30 stocks in a single trade helps eliminate the risks associated with holding a single stock. Another attraction of the ETF structure is its low cost. As ES3 is passively managed, its fees stay low due to the lower number of transactions its managers are required to execute. Moreover, like all ETFs, it is priced continuously throughout the trading day, enabling investors to quickly and efficiently buy or sell a position at any time.
Investors also benefit from a high level of transparency, given that the ETF provides daily access to its holdings. As such, market participants know where their money is invested at any given time.
How can I invest in ES3?
Investors can access ES3 with a minimum holding of just one unit through several channels. These include direct investments via a securities account, with the trade usually executed by a stockbroker or bank. However, some market participants may be unwilling to try to time the market with a lump sum, so there is also the option to invest regularly through a savings plan that a bank or broker may offer.
ES3 is an eligible investment under the Central Provident Fund (CPF) Investment Scheme Ordinary Account. Therefore, Singaporeans can opt to invest in the ETF using their CPF savings. Additionally, the ETF can be accessed through Singapore’s Supplementary Retirement Scheme. This voluntary structure is designed to encourage citizens to invest for their retirement alongside their CPF savings.