CGS Fullgoal has launched a new active exchange-traded fund on the Singapore Exchange (SGX) designed to capture opportunities in the country's small and mid-cap equity market.
The CGS Fullgoal Singapore Next 50 Active ETF targets the iEdge Next 50 Index, which comprises the 30 to 50 companies ranked immediately below the Straits Times Index (STI) constituents.
Unlike traditional passive ETFs that strictly mirror index weights, this product employs an active management strategy.
The fund will be rebalanced monthly, allowing the manager to adjust holdings in response to market conditions and individual stock performance within the mid-cap segment.
This approach aims to mitigate the higher volatility often associated with smaller listed entities while seeking to outperform the underlying index.
The launch addresses a gap in the Singapore ETF landscape, where investor exposure has historically been concentrated in the large-cap STI.