The Industrial Quaternary Sector Index

Methodology

The Industrial Quaternary Sector Index (IQS) is a sub-index of the CCQ. The CCQ is the Straits Times Index, which consists of both the ST Index and the ST Growth Index. It was first launched in 1999 and was designed to measure the overall performance of Singapore's stock market. The CCQ consists of nine different indices, which include the ST Index, ST Mid Cap Index, ST Small Cap Index, ST Frontier Index, ST Income Index, ST Asia Pacific Index, ST Asia Pacific Ex Japan Index, and the ST Islamic Index. The IQS is one of the nine indices that comprise the CCQ.

Constituents

The Industrial Quaternary Sector Index tracks the performance of the following companies: Alstom, BHP, CSL, Denso, GE, Hualon Environment, Hyosung, JFE, Komatsu, Mitsubishi, Mitsui, Nippon Steel & Sumitomo (NSS), Panasonic, Parker, PSA, Rolls-Royce, Samsung, SK, Toshiba, Unisen, Usha Martin, and Wacker Chemie.

Benchmark Index

The Industrial Quaternary Sector Index uses the MSCI Singapore Free Index as its benchmark index. The MSCI Singapore Free Index is designed to represent the performance of the large- and mid-cap segments of the Singapore equity market, with a particular focus on the Singapore equity market's exposure to companies within the Southeast Asian region. This index has a value of about SGD 1,025 as of November 2018.

Key Takeaways for Investors

Investors interested in the industrial quaternary sector should consider investing in IQS. The IQS currently has a market capitalization of SGD 3.35 billion and a price-to-earnings (PE) ratio of 13.67. The quaternary sector, also known as the Fourth Industrial Revolution, consists of industries that are based on digital and networked technologies, such as the Internet of Things (IoT), artificial intelligence (AI), virtual reality (VR), augmented reality (AR), blockchain, biometrics, and 3D printing. Industries that are part of the Fourth Industrial Revolution are expected to experience a growth rate of about 22% per year by 2020.

Key Takeaways for Companies

Companies involved in the industrial quaternary sector should consider expanding their operations to Southeast Asia. Southeast Asia is expected to see rapid growth in industrial production thanks to the rapid adoption of new technologies such as AI, IoT, blockchain, and AR. Analysts predict that the region’s smartphone users will increase from 429 million in 2017 to 633 million in 2022, while internet users will increase from 526 million to 791 million over the same period. Southeast Asia is also expected to be the fastest-growing region for mobile commerce.

How to Invest in an Industrial Quaternary Sector ETF

An ETF is a fund that tracks the performance of a specific index. Like mutual funds, ETFs are a type of investment that can be held in a brokerage account and can be traded on a stock exchange. ETFs are often low-cost investment vehicles that provide exposure to a diversified basket of stocks or bonds. When it comes to investing in an industrial quaternary sector ETF, you can choose from a couple of options: Industrial Transportation Equity Index Fund ETF (RWL): This ETF invests in stocks in the industrial transportation sector. The fund’s underlying index is the Industrial Transportation Equity Index. Industrial Goods Equity Fund ETF (RGI): This ETF invests in stocks in the industrial goods sector. The fund’s underlying index is the Industrial Goods Equity Index. Industrial Goods Fund Mutual Fund (RWX): This mutual fund invests in stocks in the industrial goods sector. The fund’s underlying index is the Industrial Goods Index.

How to Invest in an Industrial Quaternary Sector Mutual Fund

A mutual fund is a type of investment that pools money from many investors and uses the funds to buy stocks or bonds in hopes of generating a profit. Mutual funds are often low-cost investment vehicles that provide investors with diversified exposure to a wide range of stocks or bonds. When it comes to investing in an industrial quaternary sector mutual fund, you can choose from a couple of options: Industrial Goods Fund Mutual Fund (RWX): This mutual fund invests in stocks in the industrial goods sector. The fund’s underlying index is the Industrial Goods Index. Industrial Goods Index Fund Mutual Fund (RWX): This mutual fund invests in stocks in the industrial goods sector. The fund’s underlying index is the Industrial Goods Index.

The Bottom Line

There are many ways for investors to gain exposure to the industrial quaternary sector, including investing in an ETF or mutual fund that tracks the performance of the industrial quaternary index. Investors can choose from a variety of industrial quaternary sector ETFs and mutual funds, each with a different investment focus. These investments can help investors diversify their portfolios and earn steady returns.