Load Fund

Understanding load funds is crucial for investors considering this type of mutual fund, which includes a sales charge or commission. Unlike no-load funds, load funds require investors to pay an additional fee at purchase, sale, or annually, depending on the type of load. This fee compensates financial intermediaries for their advisory services. While load funds offer professional investment advice and can sometimes feature lower ongoing fees, they come with higher costs that may impact returns, especially for short-term or smaller investments. This blog explores the characteristics, advantages, and types of load funds to help you make an informed decision.

What is a Load Fund?

A load fund is a type of mutual fund with a sales charge or commission. When investors purchase shares in a load fund, they pay an additional fee, known as a load, compensating the sales intermediary, such as a broker, financial planner, or investment advisor, for their time and expertise in selecting an appropriate fund for the investor. 

Load funds can be contrasted with no-load funds, which do not carry a sales charge.  The load is either paid upfront at the time of purchase (front-end load) when the shares are sold (back-end load) or if the fund is held by the investor (level load). 

Understanding Load Fund 

Load funds are designed to provide investors access to professional investment advice and services. The load fee compensates the sales intermediary for helping the investor choose a suitable fund based on their financial goals, risk tolerance, and investment horizon. 

The load fee is typically a percentage of the amount invested or the amount sold. For example, if an investor invests $10,000 in a front-end load fund with a 5% load, they will invest $9,500, with the remaining $500 going towards the load fee. 

Load funds can benefit investors who plan to hold their shares for a long time, as the ongoing management fees are often lower than those of no-load funds. However, the load fee can significantly impact an investor’s returns, particularly for short-term investors or those with limited funds. 

Types of Load Fund 

There are three main types of load funds: 

  1. Front-End Load Funds

Front-end load funds charge a commission at the time of purchase. If an investor invests $10,000 in a front-end load fund with a 5% load, they will be investing $9,500, with the remaining $500 going towards the load fee. 

Front-end load funds can be beneficial for investors who plan to hold their shares for a long time, as the ongoing management fees are often lower than those of no-load funds. However, the upfront commission can significantly reduce the initial investment amount, making it less attractive for short-term investors or those with limited funds. 

  1. Back-End Load Fund

Back-end load funds, also known as deferred sales charge (DSC) funds, charge a commission when the investor sells their shares. The load is often a percentage of the value of the shares sold, and it can decrease over time. This means that the longer an investor holds onto their shares, the lower the load will be when they sell them. 

Back-end load funds can benefit investors who plan to hold onto their shares for long, as the load decreases over time. However, they can also be more expensive than front-end load funds for investors who sell their shares relatively quickly, as the load is based on the value of the shares at the time of sale, which could be higher than the purchase price. 

  1. Level-Load Fund

Level-load funds charge an annual load fee for as long as the investor holds the fund. This means that the investor will pay the load fee every year, regardless of how long they hold the fund. 

Level-load funds can be less attractive than front-end or back-end load funds, as the investor will pay the load fee every year, which can eat into their returns over time. Additionally, level-load funds may have higher ongoing fees than no-load funds or front-end load funds. 

Advantages of Load Fund 

Despite the controversy surrounding load funds, there are some advantages to investing in them: 

  1. Access to professional investment advice: Load funds provide investors with access to professional investment advice and services, which can be valuable for those who do not have the time or expertise to research and select appropriate funds on their own.
  1. Potential for lower ongoing fees: Front-end load funds often have lower ongoing management fees than no-load funds, making them more cost-effective over the long term for investors who hold their shares for a significant time.
  1. Potential for higher returns: Some investors believe that the professional investment advice and service provided by load funds can lead to higher returns over the long term, which may offset the cost of the load fee.

Examples of Load Fund 

Here are a few examples of load funds: 

  1. American Funds Growth Fund of America (AGTHX)

Investment Structure: This fund charges a front-end load of 5.75%. If an investor wishes to invest $10,000, they will pay $575 upfront, leaving $9,425 to invest. 

Impact on Returns: If the fund has an expense ratio of 0.65% and earns a 7% annual return, the investor’s account would grow to approximately $17,000 after ten years. However, the initial investment was effectively reduced due to the front-end load. 

  1. Janus Henderson Balanced Fund (JABAX)

Investment Structure: This fund charges a back-end load that starts at 5% and decreases to 0% after five years. If an investor puts in $10,000, they pay no upfront fee.   

Long-Term Holding: If the investor sells after three years, they will incur a 3% back-end load, which would cost $300. Assuming the fund has an expense ratio of 1% and grows at 7% annually, the investment could grow to approximately $12,000 after three years. After the back-end load, the investor would receive about $11,700. 

  1. Oppenheimer Global Fund (OPPAX)

Investment Structure: This fund charges a level load of 1% annually, with no front-end or back-end loads. An investor putting in $10,000 would not pay any upfront fees. 

Cost Over Time: The annual cost would be $100 (1% of $10,000). Assuming a 7% annual return, the investment could grow to approximately $14,000 after five years, with the investor consistently paying the level load each year. 

Frequently Asked Questions

Front-end load funds charge a commission at the time of purchase. This means that if an investor invests $10,000 in a front-end load fund with a 5% load, they will be investing $9,500, with the remaining $500 going towards the load fee. 

Back-end load funds, also known as deferred sales charge (DSC) funds, charge a commission when the investor sells their shares. The load is often a percentage of the value of the shares sold, and it can decrease over time. This means that the longer an investor holds onto their shares, the lower the load will be when they sell them. 

Load fund fees can significantly impact an investor’s returns, particularly for short-term investors or those with limited funds. The load fee reduces the amount of money that is invested and can grow over time. For example, if an investor invests $10,000 in a front-end load fund with a 5% load, they will be investing $9,500, which means that their potential returns will be lower than if they had invested the full $10,000. 

The main disadvantages of load funds include: 

  1. Upfront Fees: The load fee reduces the invested amount, impacting returns, especially for short-term or small investments.
  2. Ongoing Fees: Load funds often have higher ongoing fees, which can erode returns over time.
  3. Lack of Transparency: Fees and expenses may not be clearly disclosed, complicating informed decision-making.
  4. Conflicts of Interest: Financial advisors might recommend funds with higher commissions rather than those best suited to the investor’s needs.

Choosing a load fund depends on various factors: first, ensure the fund’s strategy aligns with your investment goals. Assess your risk tolerance to match the fund with your risk profile. Consider your investment time horizon to select an appropriate fund. Review your financial situation, including income and assets, to confirm you can manage the load fee. Finally, compare the load fund with other options, such as no-load funds, to determine if it best suits your needs. 

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Appendix/Sources [1]https://financialhorse.com/is-dca-the-best-way-to-buy-stocks/ [2] https://www.investopedia.com/terms/d/dollarcostaveraging.asp [3]https://www.poems.com.sg/market-journal/simple-but-powerful-strategies-behind-dca-and-dva/ [4]https://www.home.saxo/content/articles/macro/worried-about-investing-at-market-highs-dollar-cost-averaging-dca-can-help-10122024 [5] https://www.stashaway.sg/r/singapore-best-online-brokerages-trading-platforms [6]https://www.dbsvickers.com/vickers/pricing/individualaccount?pid=sg-vickers-en-trade-heroblock-individual-account-learnmorebtn   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. 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You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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    Published on Jun 18, 2026 11 

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It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. 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    Published on Jun 18, 2026 13 

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Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. 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    Apple Inc. Gains AI Strategy Clarity with Enhanced Siri and Intelligence Expansion, NEUTRAL Rating Maintained at US$290 Target Price

    Published on Jun 18, 2026 5 

    Company Overview Apple Inc. operates as a leading technology company that designs, manufactures, and market consumer electronics, computer software, and online services globally. The company's ecosystem approach integrates hardware, software, and services across devices including iPhones, iPads, Macs, and Apple Watches, creating a comprehensive digital experience for users. WWDC Unveils Comprehensive AI Strategy Apple held its annual Worldwide Developers Conference on 8 June, providing greater visibility into its artificial intelligence strategy through significant updates to Apple Intelligence and Siri. The conference demonstrated Apple's approach to integrating AI capabilities across its ecosystem whilst maintaining its privacy-first philosophy. Enhanced Siri and Apple Intelligence Features The centrepiece of Apple's AI advancement is Siri AI, a next-generation version powered by Apple Intelligence. This enhanced assistant represents a fundamental shift from traditional command-based voice interaction towards a more capable, proactive AI-powered digital assistant. Key improvements include personal context understanding, on-screen awareness, visual intelligence, and enhanced conversational capabilities that enable better comprehension of user intent and execution of complex tasks across applications. Apple Intelligence expansion extends throughout the ecosystem with new capabilities including AI-powered tab organisation and page monitoring in Safari, natural-language event creation in Calendar, context-aware suggestions in Messages, and AI-assisted automation through Shortcuts. The system also features enhanced image generation and photo editing tools, combining personal context, world knowledge, and on-screen awareness to deliver personalised experiences. Privacy-First Approach and Ecosystem Integration Apple emphasised its privacy-centric AI strategy, highlighting on-device AI inference whenever possible whilst utilising Private Cloud Compute only when additional processing power is required. Notably, Apple Intelligence is positioned as a system-wide capability integrated across the installed base, rather than a standalone subscription service. Investment Outlook and Recommendation Phillip Securities Research maintains a NEUTRAL recommendation with an increased DCF target price of US$290, up from US$280 previously. The firm raised its FY26 revenue and PATMI assumptions by 2% and 1% respectively, accounting for continued iPhone 17 growth. The beta assumption was lowered from 1.00 times to 0.95 times, reflecting increased confidence in Apple's long-term competitive positioning and ecosystem durability. The updates strengthen Apple's ecosystem advantage, potentially driving more robust upgrade cycles and improved services revenue whilst requiring modest capital expenditure compared to hyperscalers. However, successful execution and broader user adoption remain critical for translating these developments into sustained earnings growth. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. 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    Understanding Technology ETFs: Participate in AI Megatrend with Suitable Portfolio

    Published on Jun 17, 2026 77 

    When constructing an investment portfolio, defensive assets such as bonds and income-generating equities provide stability. However, to outperform inflation and achieve meaningful long-term wealth compounding, investors may benefit from allocating more into growth companies. In today’s global economy, one of the key growth engines is the technology sector, which powers the artificial intelligence (AI) ecosystem. From semiconductors and cloud infrastructure to data centres and advanced software, AI is not a single industry—it is an entire value chain. For retail investors, Technology ETFs (Exchange-Traded Funds) offer the most efficient way to gain diversified exposure across this ecosystem without the concentration risk of picking individual winners. This guide focuses on how investors can strategically deploy different types of Technology ETFs to capture the AI megatrend. 1. Understanding Tech ETFs as AI Exposure Vehicles Technology ETFs are fundamentally growth-oriented instruments with higher investment risk profiles compared to broad-based market ETFs. Unlike traditional value sectors, technology companies reinvest earnings into innovation, allowing them to scale rapidly alongside structural trends such as AI adoption. Key implications for investors: Higher Volatility, Higher Potential Returns: Tech ETFs may enjoy large upside growth, but they can also suffer from sharper drawdowns across market cycles. Interest Rate Sensitivity: Falling rates tend to support technology valuations, making macro timing relevant for entry points. Capital Gains Focus: Returns are driven primarily by price appreciation, not dividends. For investors, this means Tech ETFs should be positioned as long-term growth allocators, not income tools. 2. Mapping Tech ETFs to the AI Value Chain A more effective way to invest in AI is to understand where each ETF sits within the AI infrastructure stack: AI Value Chain Exposure via ETFs: AI Models & Software (Top Layer) Exposure via mega-cap heavy ETFs, such as NASDAQ-100 trackers → Example of companies: Microsoft, Alphabet, Meta Compute & Data Centres (Middle Layer) Exposure via diversified or semiconductor-focused ETFs → Example of companies: NVIDIA, AMD, Broadcom Infrastructure Enablers (Foundational Layer) Indirect exposure via broader tech or thematic ETFs → Examples include power, cooling, and industrial enablers Investor Insight: Owning a single ETF may overweight one layer. Selecting a few targeted ETFs can help investors expand their exposure across the AI ecosystem. 3. Choosing the Right “Flavour” of Tech ETF (With Real Market Proxies) To effectively capture the AI megatrend, investors should think beyond generic “tech exposure” and instead select ETFs based on where they sit within the AI ecosystem and their risk-return profile. Below is a practical breakdown using widely traded institutional ETFs: ETF Name Ticker Listing Strategy AUM (Approx) Expense Ratio No. of Holdings Key Exposure Invesco QQQ Trust QQQ NASDAQ Mega-cap growth ~US$494B 0.18% ~102 AI platforms (Microsoft, NVIDIA, Apple) Technology Select Sector SPDR XLK NYSE Arca S&P 500 Tech ~US$124B 0.08% ~75 Pure US tech leaders Invesco NASDAQ Next Gen 100 QQQJ NASDAQ Mid-cap innovators ~US$1B 0.15% ~104 Emerging AI & software players iShares MSCI World IT UCITS ETF WITS Euronext Global diversified ~US$1.04B 0.18% ~135 Global tech (US and Europe e.g. ASML) iShares Hang Seng TECH ETF 3067 HK HKEX China tech ~HKD15B 0.25% ~34 Alibaba, Tencent, Meituan a) Mega-Cap Tech ETFs (Core AI Exposure): A significant portion of AI profits today is concentrated within a handful of mega-cap firms. These ETFs are the most direct way to gain exposure to AI leaders and hyperscalers, which dominate spending on AI infrastructure and model development. Examples: QQQ - Invesco QQQ Trust, XLK - State Street Technology Select Sector SPDR ETF b) Small & Mid-Cap Tech ETFs (AI Growth Optionality): While riskier, these companies represent more specific firms benefiting from AI growth These ETFs target the next generation of AI beneficiaries, including: SaaS platforms integrating AI Cybersecurity firms Vertical AI applications Example: QQQJ - Invesco NASDAQ Next Gen 100 ETF c) Multi-Cap / Global Tech ETFs (Balanced Exposure): AI sector involves global supply chain. Global exposure helps investors avoid missing out on the growth of critical enablers outside of US market Example: WITS - iShares MSCI World Information Technology Sector Advanced UCITS ETF USD Inc These ETFs provide diversified exposure across: US mega-cap leaders Semiconductor supply chain International tech, such as ASML in Europe d) Regional Tech ETFs (China / Asia Angle): Asia and other regions also have significant investment opportunities tapping on the AI technology growth These ETFs capture: China’s AI ecosystem Platform companies adapting AI into e-commerce, fintech, and logistics Key risk: Regulatory intervention and policy shifts remain a key overhang. Example: 3067 HK - iShares Hang Seng TECH ETF 4. Implementation Strategy: Building an AI ETF Portfolio Rather than selecting a single ETF, investors should construct a layered exposure strategy aligned with the AI value chain. Step 1: Define Your Core Exposure (Foundation Layer) Start with a mega-cap ETF (QQQ or XLK) Suggested allocation: 15%–25% Step 2: Add Diversification (Ecosystem Layer) Incorporate a global or multi-cap ETF (WITS) Suggested allocation: 10%–20% Step 3: Add Growth Optionality (Satellite Layer) Allocate to mid-cap innovators (QQQJ) Suggested allocation: 5%–10% Step 4: Optional Regional Tilt (Tactical Layer) For investors seeking diversification Suggested allocation: 0%–10% Example Portfolio Construction (Balanced Investor) Allocation Bucket ETF Example Weight Core AI Leaders QQQ 20% Global Tech Diversification WITS 15% Growth Innovators QQQJ 10% Asia Tech Exposure 3067 HK 5% Total Tech Allocation 50% The AI opportunity is not confined to a single company or ETF. It is a multi-layer ecosystem spanning platforms, compute, and infrastructure. By combining different types of Technology ETFs, investors can: Capture exposure to current AI leaders Participate in future disruptors Gain exposure to the global technology supply chain The AI megatrend acts as a structural growth multiplier due to the following growth factors: Rising global AI capital expenditure Increasing demand for compute and infrastructure Productivity gains across industries Even a modest allocation can potentially enhance long-term portfolio returns. 6. Implementation Checklist for Investors Before investing in any Technology ETF, investors can apply this screening framework: Concentration Risk Check the ETF’s top holdings andensure alignment with your investment conviction Sub-sector Exposure Know whether you are buying exposure to semiconductors, software, or broad technology Expense Ratio For passive ETFs, consider funds with an expense ratio below 0.50% Liquidity & AUM Prefer funds with strong trading volume and scale and sufficient scale Currency Considerations Factor in USD/HKD currency risk exposure against SGD base currency Final Takeaway The AI revolution is not just about breakthrough technologies—it is also about the infrastructure and ecosystem that supports it. Technology ETFs provide investors with a scalable, diversified, and liquid way to participate in this transformation. If bonds are the anchor of a portfolio, then Technology ETFs can serve as the growth engine—capturing the momentum of AI, compounding capital over time, and positioning investors on the right side of one of the most powerful structural trends of this decade.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    The AI Infrastructure Buildout Is Just Beginning

    Published on Jun 17, 2026 41 

    "We have only just begun this buildout." Those were the words of NVIDIA CEO Jensen Huang when describing the artificial intelligence (AI) revolution. Huang recently referred to AI as the "largest infrastructure buildout in human history", arguing that trillions of dollars of investment will be required before the full potential of AI can be realised. While investors often focus on AI applications such as ChatGPT, autonomous agents, and generative content, the more immediate investment opportunity may lie beneath the surface—in the infrastructure powering these technologies. Just as the internet required data centres, fibre networks and cloud computing platforms, AI requires unprecedented amounts of computing power, memory, storage and networking capacity. Every AI model trained and every AI query processed relies on a vast ecosystem of hardware providers operating behind the scenes. AI's Unsung Hero: Memory One company increasingly attracting investor attention is Micron Technology. While NVIDIA's GPUs often dominate headlines, advanced memory has become one of the most critical components within AI systems. High Bandwidth Memory (HBM) allows AI accelerators to process enormous volumes of data at the speeds required by modern AI workloads. Micron's recent results highlight the strength of this trend. The company reported record revenue, earnings and cash flow, driven by robust AI-related demand and tight industry supply conditions. Management noted that AI demand continues to support strong growth across its memory business. Analysts have also pointed to HBM as a major growth driver, with demand from hyperscale data centres creating a structural shift in the memory market. Consensus expectations for Micron's HBM revenue have been revised sharply higher as AI infrastructure spending accelerates globally. Beyond NVIDIA: The Broader AI Ecosystem The AI investment theme extends well beyond a handful of technology giants. Investors are increasingly exploring opportunities across the entire AI value chain, including semiconductor manufacturers, memory suppliers, networking providers, cloud infrastructure companies and data-centre operators. Recent industry commentary suggests that AI-related spending remains resilient despite periodic market volatility. Memory demand, in particular, continues to benefit from the rapid expansion of AI training and inference workloads. Some analysts have even described the current environment as the early stages of a semiconductor "supercycle" driven by AI infrastructure investment. Accessing AI Opportunities Through US Markets Many of the world's leading AI companies are listed in the United States, making US equities a key destination for investors seeking exposure to this transformative trend. With US Zero Commission Trading with POEMS Cash Plus Account, investors can access a wide range of AI-related opportunities across the US market while reducing transaction costs. Whether investing in established industry leaders or emerging beneficiaries of the AI infrastructure buildout, lower trading costs can help investors participate more efficiently in long-term growth themes. The AI revolution is changing the world as we know it. As Jensen Huang said that “It is a foregone conclusion that AI will be infrastructure for the world, just like the Internet was infrastructure for the world.” FAQ 1. Is AI taking a breather, or something bigger? On Wednesday 10th June 2026 morning (SG time), US indexes after close: Nasdaq slipped -1% S&P slipped -0.3% DOW gained +0.2% A clear sector rotation is occurring, with AI and AI-linked sectors pulling back after record breaking rallies; as concerns around overextended AI valuations, geopolitical escalations and rising rate odds weighed on expectations. The Dow which represents the “old” economy and blue chips stocks, including financials, real estate, consumer goods, healthcare, ended up higher compared with the tech-dominant Nasdaq and cap weighted S&P 500 (as seen below). Figure 1: Daily and weekly performances of the 11 Sectors in the US as of 10th June 2026 (Wednesday) https://finviz.com/groups 2. Tech in danger zone? As at 9th June 2026, the daily chart of the Tech sector ETF (XLK) relative to the SPDR S&P 500 ETF Trust SPY has suffered a sharp fall to its 20-day EMA support area (red dotted line). A clear underperformance against S&P 500. Key support area remains the orange line of 0.2422, which was its previous resistance.If sell off pressures were to persist, the XLK/SPY ratio could fall to the green support area of 0.2338. A breakdown below that support would invalidate the bullish momentum that pushed the XLK to parabolic highs. From a momentum point of view, XLK has still outperformed the S&P 500 index YTD, with prices above key moving averages. But recent price action seems to suggest that its lead may be narrowing as the rest of the laggards play catch up. Watch out for the key support levels, with 0.2338 serving as an important level, represented by the green line. Alternatives sector plays Healthcare (XLV) The big laggard of 2025, is it finally playing catch-up in 2026? From a technical point of view, XLV has restored bullish momentum in the short term, as the 20-day Exponential Moving Average crosses above 40-day Exponential Moving Average, supported by decisive breakouts above several key resistance levels. Its current rally represents a significant turnaround from the weakness seen earlier in 2026, with the April low serving as a key support area The bullish rally will set to continue if prices can break above the key resistance area of US$155, represented by the white line. Real Estate (XLRE) Price action is bullish in the short term, with 20-day Exponential Moving Average, represented by thered dotted line crosses above 40-dayExponential Moving Average, represented by the blue dotted. Coupled with a decisive break above the former resistance at US$43 (orange line). That resistance area has transformed into a key support area through a classic resistance to support reversal. The key resistance area to watch would be US$45, represented by the white line, the swing high within the Fibonacci retracement. Price action seems poised for another leg up if there is a break above, after some range bound trading from April to May.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    S&P 500 ETFs: Comparing IVV/VOO/SPY, CSPX/SPYL & S27

    Published on Jun 16, 2026 137 

    While the full list of S&P 500 ETFs is extensive, focusing on the most popular options makes your selection process much easier to navigate. Most popular S&P 500 ETF on US Market – IVV, VOO & SPY Save on withholding tax with Ireland domiciled UCITS ETFs - CSPX vs SPYL Invest in S&P 500 ETF using SRS - S27   Why invest in an S&P 500 ETF? You can't invest directly in an index, however, you can buy an ETF that holds the same companies in similar proportions, giving you diversification across 500 companies in a single purchase. Key Benefits: Diversification – One share spreads your risk across hundreds of companies and multiple sectors. Low Cost – S&P 500 ETFs are among the cheapest investments available, with expense ratios often under 0.10%. Simplicity – No need to research individual stocks or rebalance your portfolio manually. Liquidity – These ETFs trade millions of shares daily, so you can buy or sell anytime the market is open.   Five S&P 500 ETFs at a Glance VOO, IVV and SPY are the most popular S&P 500 ETFs. CSPX and SPYL are UCTIS ETFs that have rapidly grown in popularity among international investors due to the structural tax efficiencies offered by its Irish domicile. While they all track the same index, they differ in areas like fees, trading liquidity, and fund structure — factors that can meaningfully affect your returns over time. Read on: ETF Ticker Issuer Expense Ratio Assets Under Management Listed On SPY State Street (SPDR) 0.0945% ~$768B USD NYSE IVV BlackRock (iShares) 0.03% ~$831B USD NYSE VOO Vanguard 0.03% ~$1.6T USD NYSE CSPX BlackRock (iShares) 0.07% ~$144B USD LSE SPYL State Street (SPDR) 0.03% ~$18B USD LSE (Data as of 26/05/26) 1. SPDR S&P 500 ETF Trust (SPY) Launched in 1993, SPY was the first ETF in the United States and remains the most heavily traded. Its massive daily volume makes it the go-to choice for traders, hedge funds, and institutions that need to move large amounts of money quickly. The downside? Its fees are higher compared to IVV and VOO. It also uses an older structure that does not automatically reinvest dividends. Best for: Active traders and those who prioritize liquidity above all else. Not ideal for: Long-term investors focused on keeping costs low.   2. iShares Core S&P 500 ETF (IVV) BlackRock’s iShares Core S&P 500 ETF matches VOO’s rock-bottom expense ratio and immediately reinvests dividends, which can slightly improve long-term returns through compounding. It’s structured as a standard ETF (unlike SPY’s older unit investment structure), giving it a bit more flexibility. Best for: Long-term investors who want low costs and don’t need SPY’s extreme liquidity.   3. Vanguard S&P 500 ETF (VOO) Vanguard is synonymous with low-cost investing, and VOO delivers exactly that. It’s nearly identical to IVV in structure and cost. For most people, choosing between VOO and IVV usually comes down to personal preference. Best for: Long-term investors focused on minimizing fees.   4. iShares Core S&P 500 UCITS ETF (CSPX) iShares Core S&P 500 UCITS ETF is a popular choice for international investors due to its Ireland domicile. Dividend withholding tax is 15%. Since it is an accumulating fund, dividends are reinvested automatically, which enhances long-term compounding. It has a slightly higher expense ratio and may experience lower liquidity and small tracking differences compared to US-listed S&P 500 ETFs due to trading and market structure differences, but the lower dividend withholding tax and accumulating structure can possibly lead to higher returns over the long term. Key Consideration: CSPX is listed on London Stock Exchange (LSE), subjected to LSE commission and exchange fees.   5. SPDR S&P 500 UCITS ETF (SPYL) SPYL is a much newer offering that is Ireland domiciled and has the same accumulating structure as CSPX. The accumulating share class officially launched on 31 October 2023. It is highly liquid but does not yet match the sheer historical trading volume and fund size of CSPX. Compared with CSPX, SPYL aggressively captures market share with its lower expense ratio. It is one of the cheapest S&P 500 UCITS ETFs available. SPYL also has a lower nominal share price, making it highly accessible and capital-efficient for frequent Dollar-Cost Averaging (DCA), without needing to rely heavily on fractional shares. Key Consideration: SPYL is listed on London Stock Exchange (LSE), subjected to LSE commission and exchange fees.   Invest in S&P 500 with SRS You can also invest in S&P 500 ETF on Singapore Stock Exchange as SPDR S&P 500 ETF Trust (S27), which tracks the same index as the US-listed SPY. You can buy S27 with your SRS monies through POEMS, do remember to select settlement in SGD! S27 is not available under CPF Investment Scheme (CPFIS), so you cannot use CPF OA/SA to buy it.   The Bottom Line Over the long run, the S&P 500 has historically returned around 10% annually on average, despite going through events such as wars, recessions, and financial crises. Of course, future returns are never guaranteed but owning a slice of America’s largest companies has generally been a reliable way to build wealth over time. An S&P 500 ETF won’t make you rich overnight. But for patient investors willing to ride out market ups and downs, it remains one of the simplest and most effective tools available. Interested in investing in SPY/VOO/IVV/CSPX/SPYL or S27? Just enter the ticker code and add them to your POEMS watchlist!   ETF Ticker Issuer Listed On Payment Method SPY State Street (SPDR) NYSE Cash IVV BlackRock (iShares) NYSE Cash VOO Vanguard NYSE Cash CSPX BlackRock (iShares) LSE Cash SPYL State Street (SPDR) LSE Cash S27 State Street (SPDR) SGX Cash & SRS Looking to dollar-cost average and invest regularly? Explore recurring order and Share Builder Plan. Subscribe for free US live prices for SPY/VOO/IVV Subscribe for free SGX enhanced market depth for S27   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

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    IMPORTANT INFORMATION

    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  

     

    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com