📈 Time to Spotlight Mid & Small-Caps? ETF Providers Urged to Track Overlooked SGX Indices
SINGAPORE – With the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EMDP) aimed at lifting the profile of mid- and small-cap stocks, a growing call is emerging for ETF providers to introduce funds tracking the long-established but under-recognised FTSE ST Mid Cap and FTSE ST Small Cap indices.
While most investors are familiar with the flagship FTSE Straits Times Index (SGX: ^STI), its mid- and small-cap counterparts remain largely in the shadows. Yet both indices provide compelling performance and represent a substantial slice of the market.
SGX:FTSE ST Mid Cap Index
Tracking the Next Tier: The Top 50 Beyond STI
According to the Singapore Exchange (SGX), the Mid Cap Index tracks the next 50 largest companies by market capitalisation after the 30 STI constituents. This index could serve as a strong benchmark for future mid-cap funds and ETFs, offering exposure to companies with room for growth beyond the blue-chip realm.
SGX:FTSE ST Small Cap Index
Small Cap Index Outperforms Asia Pacific Peer in 1H 2025
SGX noted in its June 18 market update that the FTSE ST Small Cap Index delivered a 4.9% total return in the first half of 2025, outperforming the FTSE Asia Pacific Small Cap Index, which returned 2.7% in the same period.
Constituents like SGX:F03.SI:Food Empire, SGX:YF8.SI:Yangzijiang Financial, SGX:CZL.SI:Centurion Corporation, SGX:BEC.SI:BRC Asia, and SGX:E3N.SI:Wee Hur Holdings led gains among the 42-member index.
With a combined market capitalisation of S$33 billion and an average daily turnover of S$69 million as of June 17, the Small Cap Index reflects both depth and liquidity — qualities essential for ETF construction.
As Singapore’s regulators push for a broader and deeper equity ecosystem, market watchers argue it’s time to give these overlooked indices their moment. ETFs based on the FTSE ST Mid Cap and Small Cap indices could be a key next step in democratising access to the broader market — and enhancing investor interest in Singapore’s vibrant mid- and small-cap space.
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