Investing during the tariff war

 

Investing During a Tariff War: 3 Investment Fund Options for Singapore Investors

Geopolitical tensions have been rising once again, and tariff wars—especially between economic giants like the US and China—are making headlines. For investors, this can feel like a storm cloud over their portfolios. Will markets crash? Should you pull out? Or is this actually an opportunity in disguise?

If you're investing from Singapore, you’re in a relatively advantageous position. As a stable, neutral financial hub in Asia, Singapore gives you access to a wide range of globally diversified funds that can weather such storms. In this post, we’ll explore:

• What a tariff war means for your investments

• How to navigate these turbulent times

• Three types of investment funds worth considering

• A comparison of their pros and cons

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🌏 What is a Tariff War and Why Does it Matter?

A tariff war occurs when countries impose taxes on each other's imports, usually to protect domestic industries or retaliate against foreign policy decisions. The most notable example in recent years has been the US-China trade war, which saw hundreds of billions in tariffs applied between the two largest economies in the world.

For investors, tariff wars can:

• Increase market volatility

• Hurt export-driven companies

• Disrupt global supply chains

• Create inflationary pressure in some sectors

But it’s not all doom and gloom. Tariff wars also shift economic power, create new winners, and open up investment opportunities—especially in emerging markets, local manufacturing, and technology sectors.

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🎯 Investment Strategy During a Tariff War

The best approach is not to panic but to diversify and focus on long-term themes that remain resilient:

• Technological innovation (AI, semiconductors, digital infrastructure)

• Emerging markets outside the conflict zones

• Dividend-paying companies that generate stable cash flow

• Thematic funds that benefit from decoupling trends (e.g., "China+1" manufacturing strategy)

With that in mind, here are three fund options for Singapore-based investors:

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🥇 Option 1: Endowus Global Core Portfolio (50/50 Equity/Bond)

Overview

This is a diversified global portfolio constructed by Endowus using institutional-grade mutual funds. The 50/50 version balances equity exposure with fixed income, ideal during turbulent periods like a tariff war.

Key Features:

• Globally diversified

• Exposure to developed markets and some emerging markets

• Built-in risk management through bonds

• Available for Cash, CPF, and SRS investment

Pros:

• ✅ Diversification cushions volatility from trade wars

• ✅ Automatically rebalanced and optimized

• ✅ Managed by professionals

• ✅ Accessible even to passive investors

Cons:

• ❌ Returns may be lower than pure equity funds

• ❌ Limited ability to capitalize on specific themes (e.g., tech, Asia ex-China)

Best for: Risk-conscious investors who want peace of mind and moderate returns during uncertainty.

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🥈 Option 2: LionGlobal Disruptive Innovation Fund

Overview

This fund focuses on high-growth tech and innovation companies—the kind that are transforming industries and often benefit from reshoring and automation trends accelerated by tariff wars.

Key Features:

• Invests in global innovators (think AI, robotics, biotech)

• Available through platforms like Endowus and FSMOne

• Pure equity fund with high return potential

Pros:

• ✅ Potentially high returns during economic realignment

• ✅ Benefits from decoupling and reshoring themes

• ✅ Thematic exposure to long-term growth sectors

Cons:

• ❌ Higher volatility, especially during short-term trade shocks

• ❌ Concentrated portfolio with sector risk

• ❌ Not suitable for conservative investors

Best for: Growth-oriented investors who can handle volatility and want to ride tech megatrends.

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🥉 Option 3: Nikko AM ARK Disruptive Innovation Fund

Overview

This is the Singapore-registered feeder fund for the popular ARK Innovation ETF, managed by Cathie Wood. It focuses on companies in areas like fintech, DNA sequencing, and autonomous vehicles.

Key Features:

• High conviction, active management

• Local SGD-class option available

• Invests in disruptive innovation across sectors

Pros:

• ✅ Strong thematic focus on transformative change

• ✅ Access to companies with exponential growth potential

• ✅ Available to Singapore retail investors without US brokerage accounts

Cons:

• ❌ Very high volatility and drawdowns

• ❌ Performance has been inconsistent in recent years

• ❌ Heavy US tech exposure means sensitivity to US-China tensions

Best for: Investors with a high risk tolerance who believe in the long-term potential of innovation, even through short-term pain.

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🔍 Quick Comparison Table

Fund Name	Risk Level	Thematic Focus	Pros	Cons
Endowus Global Core (50/50)	Moderate	Broad Global Diversification	Balanced, diversified, rebalanced	Lower upside in bull markets
LionGlobal Disruptive Innovation	High	Innovation/Tech	High growth, strong megatrend backing	Volatile, sector concentration
Nikko AM ARK Disruptive Innovation	Very High	Tech/Disruption	High conviction, high upside potential	High volatility, US-focused

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🧠 Final Thoughts: Stay Calm, Stay Invested

Tariff wars are a test of nerves, but they also create a reshuffling of global opportunities. The key is to avoid emotional reactions, stay invested, and ensure your portfolio is positioned for both resilience and growth.

• If you value stability, the Endowus Global Core portfolio is a solid anchor.

• If you want to tap into growth trends, the LionGlobal Disruptive Innovation Fund is a compelling option.

• If you’re feeling bold and want to bet on the next Tesla or CRISPR breakthrough, the ARK fund via Nikko AM might be your pick.

No one can predict how a tariff war will unfold, but with smart diversification, a focus on megatrends, and platforms like Endowus, FSMOne, or POEMS at your disposal in Singapore, you're well-positioned to invest wisely through the chaos.