Bond ETF Singapore: Best Options for Singapore Investors 2026
For informational purposes only. Not financial advice.
A bond ETF in Singapore is an exchange-traded fund that holds a portfolio of bonds — government, corporate, or a mix — providing diversified fixed income exposure at low cost. Singapore investors can access both SGD-denominated and globally diversified bond ETFs listed on SGX.
Why Bond ETFs for Singapore Investors?
Bond ETFs provide instant diversification across dozens or hundreds of bonds at a fraction of the cost of buying bonds directly. For retail investors who lack the capital for institutional bond markets (most SGD bonds require S$200,000+ minimum), bond ETFs democratise access to fixed income as an asset class.
In the Singapore context, bond ETFs are particularly useful for: (1) SRS account investment (tax-sheltered retirement savings), (2) building a diversified retirement income portfolio alongside S-REITs and dividend stocks, and (3) CPF Investment Scheme (CPFIS) participation for investors willing to take some duration risk.
Bond ETFs Available in Singapore (2026)
Options accessible to Singapore investors include: ABF Singapore Bond Index Fund (A35) — tracks the iBoxx ABF Singapore government and quasi-government bond index, SGD-denominated, the most popular domestic bond ETF on SGX; Nikko AM SGD Investment Grade Corporate Bond ETF (MBH) — SGD investment-grade corporate bonds; Global bond ETFs via CDP — some investors access iShares Core Global Aggregate Bond ETF (AGGG) or similar via SGX, though most global bond ETFs are listed in London/US and require overseas brokerage.
Duration Risk: The Key Consideration
Bond ETFs carry duration risk — when interest rates rise, bond prices fall. Longer-duration bond ETFs (e.g. those holding 10-year+ bonds) fall more sharply than short-duration ETFs when rates rise. For Singapore investors concerned about rate risk, short-duration or money market ETFs may be more appropriate than long-duration aggregate bond funds.
Bond ETF vs T-bills vs SSBs: Which Is Better?
T-bills and SSBs offer risk-free Singapore government yields with no duration risk (T-bills have short maturities; SSBs can be redeemed at par). Bond ETFs offer potentially higher yields via credit risk (corporate bonds) or duration risk, with daily liquidity on SGX but price volatility. For pure capital preservation, T-bills/SSBs win. For portfolio income diversification, bond ETFs add value.
Related: SSBs, T-Bills, Glossary, Calculators.
Frequently Asked Questions
What is a bond ETF in Singapore?
A bond ETF in Singapore is an exchange-traded fund that holds a portfolio of bonds — government, corporate, or a mix — providing diversified fixed income exposure at low cost. Singapore investors can access both SGD-denominated and globally diversified bond ETFs listed on SGX.
What is the most popular bond ETF on SGX?
The ABF Singapore Bond Index Fund (ticker: A35) is the most established SGD bond ETF on SGX, tracking a basket of Singapore government and quasi-government bonds (MAS bills, HDB bonds, LTA bonds). It offers relatively low duration risk and has a long track record.
How do bond ETFs compare to Singapore T-bills?
T-bills are risk-free, short-duration (6 months/1 year), and redeemed at par at maturity. Bond ETFs have daily price fluctuations, carry varying levels of credit and duration risk, and have no maturity date. T-bills are better for capital preservation; bond ETFs are better for portfolio diversification and accessing credit risk premium over time.
Are bond ETFs eligible for CPF and SRS in Singapore?
Some SGX-listed bond ETFs are approved for CPFIS (CPF Investment Scheme) investment. All SGX-listed ETFs are generally eligible for SRS investment. The ABF Singapore Bond Index Fund (A35) has historically been available for CPFIS-OA investment. Check the CPF Board’s approved investment list for current eligibility.
What is duration risk in bond ETFs?
Duration measures how sensitive a bond’s price is to interest rate changes. A bond ETF with duration of 5 years will fall approximately 5% in price if interest rates rise 1%. This is why short-duration bond ETFs are preferred in rising rate environments, and long-duration ETFs benefit more when rates fall.