Mark 13 October 2026 on your calendar.
That’s when DWS Group (XETRA: DWS) is scheduled to cross-list four Undertakings for Collective Investment in Transferable Securities (UCITS) exchange-traded funds (ETFs) directly in Singapore and denominated in the Singapore dollar (SGD), making investments in ETFs tracking global heavyweight indexes more frictionless.
Before these listings, the London Stock Exchange (LSE) had been the go-to venue for local investors seeking tax-optimised global equity exposure.
With the new listings, local investors will be able to enjoy the same tax benefits with local operational advantages.
Meet the Four Xtrackers ETFs
The line-up spans US large caps, an equal-weight variant, tech-heavy NASDAQ stocks and global developed markets.
Crucially, all four are accumulating share classes, which reinvest dividends rather than paying then out.
That makes them less suitable for income investors.
| ETF Name (SGX ticker) | Reference Index | Total Expense Ratio (TER) |
| Xtrackers S&P 500 UCITS ETF (SGX: XUS) | S&P 500 Index | 0.03% |
| Xtrackers S&P 500 Equal Weight Index UCITS ETF (SGX: EUS) | S&P 500 Equal Weight | 0.15% |
| Xtrackers NASDAQ 100 UCITS ETF (SGX: XND) | NASDAQ-100 Index | 0.20% |
| Xtrackers MSCI World UCITS ETF (SGX: XWR) | MSCI World Index | 0.12% |
With a reasonable TER of 0.03%, XUS beats its LSE counterparts like iShares Core S&P 500 UCITS ETF (LSE: CSPX), which charges a 0.07% TER.
EUS, the equal-weight variant of XUS, has a TER of 0.15%, matching that of iShares S&P 500 Equal Weight UCITS ETF (LSE: EWSX).
For investors who can endure higher price swings, XND could be what they are looking for.
At 0.20%, XND’s TER beats those of its LSE peers, such as iShares NASDAQ 100 UCITS ETF’s (LSE: CNDX) 0.30% TER.
Investors seeking the broadest developed-market exposure might prefer XWR, which extends beyond the US to Europe, Asia-Pacific, and the Middle East.
With a TER of 0.12%, XWR is cheaper to own than its LSE equivalent, iShares Core MSCI World UCITS ETF (LSE: SWDA), which charges 0.20%.
The Tax Advantage: Why Irish Domicile Matters
Many Singapore investors hold US-domiciled ETFs like SPDR S&P 500 ETF Trust (SGX: S27), or S27, for long-term compounding, but as non-US persons, they face a tax drag that can take a toll on their returns over time.
The reason?
The lack of a US-Singapore tax treaty.
Aside from the 30% withholding tax deducted from dividends, Singaporean investors holding more than US$60,000 in US assets could face US estate tax of up to 40%.
Thankfully, all four Xtrackers ETFs are sub-funds of an Irish entity.
The implications?
Irish-domiciled funds are generally not exposed to US estate tax, while dividend withholding tax drops from 30% to 15% at the fund level.
| Annual cost | US-domiciled “S27” | Irish-domiciled “XUS” | Annual saving with XUS |
| Total expense ratio (TER) | 0.0945% | 0.03% | +0.0645% |
| Dividend withholding tax drag* | 0.33% (30% of 1.1% yield) | 0.165% (15% of 1.1% yield) | +0.165% |
| Total annual cost | 0.4245% | 0.195% | 0.2295% (about 23 basis points, or bps) |
| Cost on a S$100,000 investment | about S$425 | about S$195 | about S$230 |
*Assumes a dividend yield of about 1.1% for the S&P 500. Actual yields vary.
Combining tax and fee savings, XUS delivers an annual structural advantage of about 23 bps over S27.
On a S$100,000 investment, that works out to roughly S$230, assuming the dividend yield stays near 1.1%.
Pick Your Strategy
Selecting between these listings depends on your asset allocation goals.
XUS vs EUS:
Both XUS and EUS draw from the same 500 companies in the S&P 500.
The difference lies in their weightings.
Market-cap-weighted XUS concentrates over 20% in tech giants like NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT), while equal-weighted EUS is periodically rebalanced to approximately equal weights.
XND for Tech Growth:
With about 60% in technology, and financial companies excluded by design, XND leans into tech growth but carries higher volatility.
XWR for Developed Equities:
Covering 23 developed markets with a 75% US weighting, the XWR ETF that tracks the MSCI World Index serves as a core global anchor, though it excludes emerging markets entirely.
Operational Perks and Local Mechanics
Trading in SGD on SGX often avoids upfront currency conversion fees.
However, investors remain exposed to USD/SGD exchange rate fluctuations due to the the underlying foreign-currency assets (mainly USD).
Investors will have the flexibility of holding these ETFs in their individual Central Depository (CDP) accounts or managing them through a custodian broker.
Moreover, these four Xtrackers funds are expected to be eligible for the Supplementary Retirement Scheme (SRS), subject to your SRS operator and broker.
That lets investors put SRS savings, which already earn tax relief on contributions, to work in low-cost index funds.
However, they are not included under the CPF Investment Scheme (CPFIS), so CPF savings cannot be used.
Cash-strapped young investors can start with as little as one share and build up their holdings through dollar-cost averaging.
Get Smart: Building a World-Class Portfolio Locally
The new UCITS ETFs will bring global investing right to the doorstep of local investors.
The benefits are plentiful: ultra-low expense ratios, dividend tax savings, reduced US estate tax exposure, SRS eligibility, and Asian trading hours.
However, smart investors should choose ETFs that align with their financial goals, then adopt a long-term investing horizon and let structural fee and tax savings compound over time.
What if the current “market turmoil” isn’t a crisis… but a setup?
History shows most pullbacks don’t become crashes. The real edge is knowing how to act early. Our FREE report reveals the framework smart investors use. Download it now.
Follow us on Facebook, Instagram, Telegram and YouTube for the latest investing news and analyses!
Disclosure: Larry L. owns shares of Nvidia, Apple, and Microsoft.
