This ETF offers exposure to Singaporean equities, and is the most liquid and most popular option for achieving exposure to the Singaporean economy. Singapore is one of the more unique economies in the world, and many investors may find the risk/return profile to be attractive. As such, EWS can be used in multiple ways by different investors. This ETF can certainly be an efficient means of establishing a short-term tactical tilt towards Singapore, as the impressive liquidity allows investors to establish or liquidate positions quickly. And EWS can also be appealing as a satellite holding within a more stable long-term portfolio; because Singapore receives little weighting within broad-based international or Asian ETFs, EWS can help to establish a more meaningful allocation to this country.
Several elements of the EWS portfolio are worth noting. Like many international equity ETFs, EWS is dominated by large cap stocks, which introduces certain biases into the portfolio. In the case of EWS, financials receive a heavy allocation, which may be a pro or con depending on an investor's outlook. EWS is ideal for investors seeking exposure to large cap Singaporean stocks as many of these securities are not heavily represented in other developed market ETFs. Those seeking more broad-based exposure to developed Asian economies might look at EPP (which excludes Japan) or VEA (which includes a big weighting to Japan).