Singapore’s exchange-traded fund market has evolved beyond simple index-tracking passive investment products. It has become a more dynamic and diverse space, with a growing range of offerings spanning commodity-backed funds, thematic strategies and actively managed ETFs.
At the forefront of this shift is Lion Global Investors (LGI), which has steadily expanded its footprint through new product structures, cross-border initiatives and a broader push to make ETFs more accessible to different segments of investors.
In 2025, that strategy came into sharper focus. The firm not only scaled its assets and product suite, but also introduced one of the most notable developments in the market – Singapore’s first active bond ETF.
“These developments reflect how investor needs are changing,” says Chu Toh Chieh, head of fixed income and multi-asset solutions at LGI. “There is a growing demand for solutions that go beyond traditional passive exposure, particularly in areas like income and risk management.”
These efforts also underpinned LGI’s win across multiple categories at the Asia Asset Management’s ETF Awards 2026, including ETF Launch of the Year, Most Innovative ETF, ETF Manager of the Year and ETF Rising Star.
A product that arrived at the right time
At the centre of LGI’s momentum is the LionGlobal Short Duration Bond Fund (Active ETF SGD Class). Launched in September 2025, it is Singapore’s first active bond ETF and the first listed share class of an existing unit trust – effectively bringing a longstanding institutional strategy into an exchange-traded format.
Market response was immediate. The ETF raised S$141 million (US$110 million) during its initial offering period, the largest among Singapore Exchange-listed ETF launches in 2025. By year-end, assets had grown to S$191 million, supported by continued inflows from both retail and institutional investors.
“The launch came at a point where investors were actively looking for alternatives,” says Chu. “As interest rates started to come down, many were facing reinvestment risk, particularly those coming out of short-term instruments like T-bills.”
As yields on Treasury bills declined through 2025, investors began searching for income solutions that could offer better returns without taking on excessive risk.
The ETF’s short-duration strategy, focused on high-quality bonds issued by governments, banks and corporates, provided a relatively defensive option. Backed by a track record of more than three decades, the underlying fund has been positioned as a steady income-generating strategy across different rate cycles.
What resonated with investors was not just the ETF format, but the underlying strategy,” Chu adds. “This is a portfolio that has been managed through multiple market environments, so there is a level of familiarity and trust.”
Innovation beyond a traditional ETF
The product’s structure has also drawn attention. The ETF is the first in Singapore to offer a listed share class of an existing unit trust, allowing investors to access the same portfolio either through traditional fund platforms or via the exchange.
“Having a dual-access structure gives investors flexibility in how they want to invest, while ensuring consistency in the underlying portfolio,” says Ong Xun Xiang, head of ETF at LGI.
The approach also signals a broader shift in how ETFs are being used.
In fixed income, most ETFs in the region remain passive. By introducing an actively managed bond strategy in ETF format, LGI is effectively testing a different model – one that combines active credit selection and duration management with the liquidity and transparency of exchange-traded products.
“For a long time, active fixed income strategies were largely accessed through traditional funds,” Ong says. “What this does is lower the barrier to entry and make that strategy available to a wider group of investors.”
Scaling up the ETF platform
The success of the active bond ETF is part of a wider expansion across LGI’s ETF business.
As at end-2025, the firm’s ETF assets under management stood at S$1.9 billion, with net inflows of S$592 million for the year. This represents a 67% increase from 2024, reflecting both new product demand and continued investor participation across its existing lineup.
From its first ETF launch in 2017, LGI has grown its offerings to nine – spanning Singapore, China, Asia ex-China and global markets as of end-2025.
This expansion has helped LGI rise to become the fourth-largest ETF issuer in Singapore by assets under management.
Extending reach beyond Singapore
Another area of growth is cross-border ETF collaboration. In 2025, LGI worked with China Merchants Fund Management under the SSE–SGX ETF Product Link to facilitate cross-listed ETF offerings between Singapore and China.
This included the launch of a feeder ETF for the Lion-China Merchants Emerging Asia Select Index ETF in China, which attracted RMB1 billion (US$147 million) on the first day of its initial offer period, alongside the listing of a CSI Dividend Index ETF on SGX, which was the first of its kind to be listed outside of China.
“Cross-border connectivity is becoming increasingly important. Investors are looking beyond their domestic markets, and ETFs are one of the most efficient ways to provide that access,” says Ong.
The initiative also positions LGI within a broader regional ecosystem, where ETF development is increasingly linked to collaboration across exchanges and asset managers.
Building participation via access and education
Alongside product innovation, LGI also focuses on expanding distribution and investor engagement.
Institutional participation has grown, particularly in income-oriented strategies, while retail adoption has been supported through partnerships with brokerage platforms such as OCBC Securities, DBS Vickers, iFAST, Lim & Tan Securities, Maybank Securities, Moomoo, Phillip Securities and Tiger Brokers.
At the same time, the firm continues to advocate investor education by developing accessible materials and digital content that simplify ETF concepts and strategies, helping retail investors build a clearer understanding of ETFs as an investment product.
“There is still a lot of room for growth in how investors understand and use ETFs. Education plays a key role in that, especially as products become more sophisticated,” Ong adds.
Positioned for the next phase
LGI’s win across multiple categories at the ETF Awards 2026 marks a year in which the firm expanded not only its product range, but also its role in shaping the market.
Rather than focusing on a single strategy, its approach has been to build across multiple fronts: from launching new structures and scaling assets to strengthening regional links and broadening investor access.
As Singapore’s ETF market continues to develop, LGI’s ability to scale and innovate will play a pivotal role in determining how the next phase of growth unfolds.
