SGX reveals three most active China exchange traded funds in Singapore

They generated a year-to-date total return of 8.4%.

Exchange Traded Funds (ETFs) are open-ended investment funds listed and traded intraday on a stock exchange. They aim to track the performance of an index and provided access to a wide variety of markets and asset classes.

According to SGX, ETFs also allow investors to assess securities listed on stock exchanges outside of their home countries, as well as, buying commodities such as gold, where the transport and storage costs would make the investment inefficient. With ETFs, investors can get into these markets in an efficient and convenient manner.

Amongst the five China ETFs listed on Singapore Exchange (SGX), the three most active China ETFs in the 2014 year-to-date have been db x-trackers CSI 300 UCITS ETF, db x-trackers MSCI CHINA INDEX UCITS ETF, and United SSE50 China ETF. 

These first two are traded in US dollars, and the latter in Singapore dollars. These three China ETFs are synthetic ETFs that use derivative instruments such as swaps to track the reference index as compared to physical ETFs that hold the securities or assets of the reference index. These three ETFs generated an average 2014 year-to-date total return of 8.4%.