TL;DR
MAS is consulting on retail futures-based funds tracking one permitted commodity: gold, silver, platinum, crude oil or iron ore. These would not be physical-gold ETFs. At least 90% of NAV must reference one commodity, derivatives exposure is capped at 100% of NAV, and the consultation closes on 10 August 2026.
This is a consultation, not a product launch
The Monetary Authority of Singapore (MAS) is proposing a new Alternative Funds Appendix to the Code on Collective Investment Schemes. One worked example is a retail fund concentrated in futures on a single commodity. The consultation opened on 9 July and has feedback due by 10 August 2026.
No commodity-futures fund has been approved by this paper. MAS says it aims to design guardrails for most new fund types in about three months; once guardrails exist, a same-type application meeting them would follow the existing 21-day authorisation timetable. The three months and 21 days describe a proposed regulatory process, not a promise that a retail product will be on sale by a particular date.
Futures fund does not mean physical-gold ETF
MAS proposes permitting funds linked to futures on five commodities: gold, silver, platinum, crude oil and iron ore. The contracts must be listed and traded on an organised exchange, and the fund must track a well-recognised futures price index.
The naming rules are deliberately blunt. A fund name should identify the commodity and contain “futures” or a derivative of that word. If the fund is exchange-traded, MAS proposes that its name must not contain “ETF”. That is intended to distinguish a derivatives-based product from a traditional diversified ETF and from a fund holding physical precious metal.
The consultation itself notes that existing Singapore rules already make a separate exception for funds holding physical gold, silver or platinum that meet good-delivery and valuation requirements. The new proposal addresses futures exposure, with different mechanics and risks.
The proposed 90% and 100% limits
At least 90% of net asset value (NAV) would have to reference one permitted commodity. The remaining portion—up to 10% of NAV—could contain only eligible deposits and/or units of commodity ETFs tracking that same commodity. Global exposure to financial derivatives, calculated using the commitment approach, must not exceed 100% of NAV.
Those limits control the structure; they do not guarantee that the fund will match the commodity’s spot price. A futures index can behave differently from a physical holding because contracts expire and must be replaced.
Six checks before buying
1. Which index is being tracked?
Read the exact index rulebook, not just the commodity name. MAS gives the S&P GSCI Crude Oil Enhanced Index Excess Return and the DCE Iron Ore Futures Price Index as examples. Contract selection, expiry months and weighting determine the return path.
2. How does the fund roll contracts?
When an expiring future is sold and a later contract is bought, the price difference creates roll return. A market in contango can impose a recurring drag; backwardation can help. MAS specifically requires prominent disclosure of rolling risk.
3. What sits behind the futures exposure?
Check the collateral and cash-management policy: eligible deposits, counterparties, interest earned, margin arrangements and any same-commodity ETF sleeve. The proposed 10% residual bucket is narrow, but its operation still affects cost and liquidity.
4. Can the portfolio tolerate single-commodity concentration?
The minimum 90% exposure is the point of the product, not a side effect. Gold, crude oil and iron ore have different drivers, volatility and market structures. MAS proposes disclosure of concentration, leverage, liquidity, volatility and commodity-specific risks, plus the intended customer segment.
5. What do fees and currency do to the return?
Ask for the management fee, trading and roll costs, bid-ask spread, collateral yield, tax treatment and foreign-exchange policy. The consultation sets product guardrails; it does not set a universal fee or currency hedge.
6. What is the expected tracking gap?
Compare the fund with its stated futures index, not automatically with the spot commodity. Request historical simulations, tracking-difference assumptions and stressed results. A gold-futures fund can lag or lead physical gold even when both labels contain the word “gold”.
The demand case has a denominator
There is clear Singapore interest in commodity exposure, although it does not prove demand for this exact future product. Singapore Business Review reported eToro survey results from 1,000 Singapore retail investors: 50% said they held gold, up from 45% in the previous quarter. Among respondents who invested in commodities, commodities averaged 17% of their portfolios; 79% held gold, 36% silver and 24% oil.
Those 79%, 36% and 24% figures use commodity investors as the denominator, not all 1,000 respondents. The wider eToro study covered 11,000 retail investors in 13 countries and was conducted from 12 to 27 February 2026. The survey demonstrates commodity interest; it does not establish understanding of roll yield, collateral or tracking error. That gap is exactly why the product label matters.
What should Singapore investors check in a commodity-futures fund?
Check the futures index, roll method, collateral, concentration, total costs and expected tracking difference before comparing the fund with physical metal or the spot commodity.
Why can a gold-futures fund differ from physical gold?
Its return comes from futures contracts, collateral and contract rolls. Those components can move differently from the spot price and from a fund that owns allocated physical gold.
Frequently Asked Questions
Has MAS approved retail commodity-futures funds?
No. MAS published a consultation on 9 July 2026. Feedback closes on 10 August 2026, and any fund would still need to meet future guardrails and obtain authorisation.
Which commodities would the proposed funds be allowed to track?
MAS lists gold, silver, platinum, crude oil and iron ore futures traded on an organised exchange.
Would these products be physical-commodity ETFs?
No. They would obtain concentrated exposure through futures. MAS proposes that an exchange-traded version must include “futures” in its name and must not use “ETF” in the name.
What are the proposed exposure limits?
At least 90% of NAV must reference one permitted commodity. The remaining 10% may only be eligible deposits and/or units of same-commodity ETFs, while global derivatives exposure under the commitment approach must not exceed 100% of NAV.
Sources: MAS media release and Consultation Paper P014-2026; independent reporting by Benicia Tan in The Business Times and Kang Wan Chern in The Straits Times; demand evidence from Singapore Business Review and eToro.
Caveat: The rules are proposals and may change after consultation. This article is informational only and is not regulated financial advice or a recommendation to buy any fund or commodity.