EWS: Singapore Stocks Staging A Strong 2025 Rally, P/E Still Attractive
iShares MSCI Singapore ETF (EWS) has surged 33% year-to-date, outperforming US stocks and regional peers, driven by strong momentum and a weaker US dollar. EWS offers exposure to large and mid-cap Singaporean equities, boasts a low 14.1x P/E, and provides a high 3.59% trailing dividend yield. The ETF is concentrated in Financials and Industrials, with its top 10 holdings comprising 77% of the portfolio, and features strong technical momentum.
EWS: Singapore Offers Solid Valuations And A Potential Safe Haven
Singapore's stable, innovative economy and prudent governance make EWS a relatively safe investment with solid long-term upside, despite recent strong gains limiting near-term potential. EWS offers geographic diversification, low management fees, and a 3.83% dividend yield, but is concentrated in traditional sectors and lacks exposure to emerging tech. Singapore's population growth is driven by skilled immigration, supporting domestic demand and competitiveness, though demographic and political risks remain.
EWS: Singapore Stock Market Looks Less Attractive Than Its Wider Economy
EWS has outperformed the S&P 500 recently, sparking interest in Singapore's innovative economy. Despite these recent gains, EWS's long-term returns are lackluster, with only 151% in total return over nearly 30 years. The ETF's seventeen holdings do not effectively capture Singapore's broad economic strength and innovation leadership.
Investing In Singapore Is A Great, High-Risk Opportunity
EWS offers a 3.92% dividend yield and has shown strong momentum, gaining over 10% in 6 months and over 30% in a year. Singapore's robust economic indicators, including 5% GDP growth, low inflation and a positive interest-rate outlook, make it an attractive investment despite high government debt. The ETF's concentration in a few sectors and reliance on China pose significant risks, especially in the context of geopolitical tensions.
EWS: This Singapore ETF Offers A Good Dividend Yield, But Caution Prevails
EWS offers broad exposure to Singapore and Southeast Asia with an attractive dividend yield, but global economic uncertainties warrant a Hold stance. Key components like DBS Group and OCBC show strong performance, while new additions like Sembcorp focus on green energy transformation. Concerns include high debt levels in companies like Wilmar and the uncertain profitability of Grab, leading to cautious investment recommendations.
EWS: The Only Choice
International investing with single country ETFs like iShares MSCI Singapore ETF is favored at this point of the cycle. Singapore offers business-friendly tax policies and government incentives for infrastructure, skills training, and technological innovation. EWS provides targeted exposure to the Singaporean equity market with high concentration in the Financial sector, offering unique diversification and dividend yield.
