Debated in Parliament on 11 Nov 2024.
Mr Gerald Giam Yean Song asked the Minister for Manpower (a) which are the US Exchange-Traded Fund (ETF) equity index funds that CPF members can currently invest in directly under the CPF Investment Scheme (CPFIS); (b) given that the CPFIS-approved list includes only Singapore-based ETFs and that US equity exposure is available only through unit trusts with higher expense ratios, whether the Ministry plans to include direct investment options in US ETF equity index funds under CPFIS; and (c) whether CPF will proactively seek to add low-cost US ETF index funds to improve returns for CPF members.
To safeguard Central Provident Fund (CPF) members' interest, only Exchange-Traded Funds (ETFs) listed on the Singapore Exchange (SGX) can be included under the CPF Investment Scheme (CPFIS), as foreign products are subject to changing regulations in jurisdictions outside of the Government's regulatory oversight.
Currently, there are ETFs listed on the SGX with exposure to United States (US) equities1. Fund managers of SGX-listed ETFs may choose to apply for their products to be included under the CPFIS, depending on their commercial considerations. The CPF Board carefully assesses these applications, taking into consideration factors, such as investment-related fees and investment track records.
CPF members already have the option to invest directly in a number of low-cost, passively-managed unit trusts with US equity exposure through CPFIS2. These unit trusts have comparable expense ratios as ETFs.
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