With the continuous development of the global financial markets, there is a growing demand from investors for investment products that are stable and have growth potential. Recently, an innovative financial product—the world's first exchange-traded fund (ETF) focusing on the Asia-Pacific region's financial industry-is set to debut, providing investors with a fresh investment opportunity.

Listing Information

Fund Details:

• Product Type: Exchange Traded Fund (ETF) designed to track the performance of the iEdge APAC Financials Dividend Plus Index.
• Trading/Counter Names:
  • Singapore Dollar Category Units (Primary Currency) as Lion-OSPL APAC Fin S.
  • US Dollar Category Units (Secondary Currency) as Lion-OSPLAPACFinUS.
• Stock Codes:
  • Singapore Dollar Category Units (Primary Currency) as YLD.
  • US Dollar Category Units (Secondary Currency) as YLU.
• Trading Currencies: Singapore Dollar (SGD) and US Dollar (USD).
• Dividend Policy: SGD category units will distribute dividends quarterly, determined by the manager.
• Minimum Trading Units: 100,000 units or higher multiples as determined by the manager, in increments of 1,000 units.
• Investment Strategy: Employing a passive or indexed investment approach, investing in index securities to closely mirror index performance.
• Risk Factors: Include market risk, foreign exchange risk, liquidity risk, specific product risk, etc.

Fund Investment Strategy:

This ETF aims to provide investors with an indexed approach to investment by investing in the 30 largest and most tradable financial sector companies in the Asia-Pacific region, including real estate investment trusts and business trusts, selected for their stable dividend payment records, aiming to provide investors with consistent dividend income.

Dividend Policy:

• Dividend Yield Target: At least 5%.
• Dividend Payment Frequency: Four times a year.

The ETF's dividend policy is designed to pay dividends at least four times a year, providing investors with a stable cash flow.

Fund Characteristics:

• Indexed Investment Approach: The fund adopts an indexed investment strategy, aiming to track the performance of 30 financially stable companies in the Asia-Pacific region with consistent dividend payments. These companies include banks, insurance companies, securities firms, and other financial institutions.
• Target Investors: Suitable for those seeking to invest in the Asia-Pacific financial industry and expect stable dividend income through holding shares of these companies.
• Risk and Return: Investors should understand that although the fund invests in companies with stable dividend payments, as a stock fund, it still faces market fluctuations and investment risks. Investors should be able to accept this volatility and risk.
• Stable Dividends: The ETF aims to provide investors with stable dividend income from the Asia-Pacific financial industry.
• Liquidity: As an ETF listed on SGX-ST, the fund offers convenience and liquidity in exchange trading.

Investment Considerations:

• Market Performance: Investors should consider the historical and expected performance of the index, as well as the overall trends and prospects of the Asia-Pacific financial industry.
• Dividend Stability: While the fund invests in companies with a stable dividend payment record, future dividend payments may be affected by economic conditions and company performance.
• Foreign Exchange Risk: Since investments may involve securities denominated in non-SGD currencies, exchange rate fluctuations may affect the fund's income and unit value.

The listing of the LION-OCBC Securities APAC Financials Dividend Plus ETF provides investors with a new investment option aimed at achieving stable dividend income. This ETF not only has a stable dividend payment record but also employs a passive or indexed investment approach, aiming to closely track the index.

The uSMART platform will soon launch Lion-OSPL APAC Fin S$ (YLD), providing investors with a convenient trading channel and quality service. Investors can easily access detailed information, historical performance, and market dynamics of the ETF through the uSMART platform and trade at any time. We are committed to providing a secure, efficient, and transparent trading environment, offering investors the best investment experience.

 How to place a trade on uSMART mobile application

After logging into the uSMART SG app, click on the search button located at the top right corner of the page. Enter the stock code "YLD" and click to view historical trends and trading details. Choose the "Buy/Sell" function, then select the type, quantity, and validity period before submitting the order. Follow the image-guided instructions below:

This diagram is provided for illustrative purposes exclusively

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Important Notice and Disclaimer:

We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

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