You can buy either of the below two Exchange Traded Funds (ETFs).
1. Nikko AM Singapore STI ETF (Symbol: G3B) [Lot Size: 100]
2. SPDR Straits Times Index ETF (Symbol: ES3) [Lot Size: 1,000]
What is an Exchange Traded Fund?
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.
Does STI ETFs pay dividend?
Yes, twice yearly.
Yes, twice yearly.
1. Nikko AM Singapore STI ETF - May and October
2. SPDR Straits Times Index ETF - February and August
2. SPDR Straits Times Index ETF - February and August
How liquid is the Nikko AM STI ETF?
ReplyDeleteWell, it depends on how you define liquidity? At small volume (100 units), I had no problem making any purchase.
ReplyDeletefor OCBC BCIP - it can sell in odd lots
ReplyDeleteFor POSB invest saver - cannot sell in odd lot. at least 100 000 units.
Hi There!
ReplyDeleteNot sure why you posted it here, but anyway, unless I'm reading it wrongly, from POSB Blue Chips - Invest Saver Official Website >>
Q :
How do I redeem my holdings in the POSB Invest-Saver?
A :
Only full redemption of your total holdings in the POSB Invest-Saver is allowed. No partial redemption will be accepted.
Hi there,
ReplyDeleteThere are several STI ETF available, how do I select which is prefered over the rest? Are the fees similiar? and how about dividend and payout?
Both Nikko AM Singapore STI ETF and SPDR Straits Times Index ETF track the STI ETF and hold the same STI component stocks, but in different proportions. This also explains why they may have different dividends.
DeleteIt is hard to determine which is preferred - in terms of fund size (and lower fees, if I remember correctly) I'd choose SPDR. However, the lot size of 1,000 makes it difficult for small-time investors like myself to purchase it regularly.
Fees :
You can check out the official websites for the two STI ETFs and make your own latest updated comparison.
Dividend :
You can check out SGX.com > Company Disclosure > Corporate Action. Select the STI ETF you want, and Category as Dividend and you will get the answer you need.
Cheers!
Thanks for your quick response and willingness to share. I was considering ishare previously but will look at the ones as per your information.
ReplyDeleteNo problem. I didn't consider iShares MSCI Singapore ETF (I19) because its base currency was in USD, plus the management fees at 0.53% seemed to be higher than both the STI ETFs.
ReplyDeleteJust for fun, the top 5 holdings from the 3 funds (latest info I could find today). Look closely and you'll find that iShares doesn't really track STI ETF? Yet another reason why I'd rather not touch iShares.
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iShares MSCI Singapore ETF
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1. Singapore Telecommunications Limited [11.82%]
2. United Overseas Bank Ltd. (Singapore) [11.35%]
3. Oversea-Chinese Banking Corporation Limited [11.11%]
4. DBS Group Holdings Ltd [11.08%]
5. Keppel Corporation Limited [5.18%]
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SPDR Straits Times Index ETF
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1. DBS Group Holdings Ltd [10.67%]
2. Oversea-Chinese Banking Corporation Limited [10.29%]
3. Singapore Telecommunications Limited [9.78%]
4. United Overseas Bank Ltd. (Singapore) [9.02%]
5. Jardine Matheson Holdings Limited [6.05%]
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Nikko AM Singapore STI ETF
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1. DBS Group Holdings Ltd [10.48%]
2. Oversea-Chinese Banking Corporation Limited [10.40%]
3. Singapore Telecommunications Limited [9.94%]
4. United Overseas Bank Ltd. (Singapore) [9.04%]
5. Jardine Matheson Holdings Limited [6.13%]
------------------------------------------
Straits Times Index
------------------------------------------
1. DBS Group Holdings Ltd [10.75%]
2. Oversea-Chinese Banking Corporation Limited [10.46%]
3. Singapore Telecommunications Limited [9.88%]
4. United Overseas Bank Ltd. (Singapore) [9.20%]
5. Jardine Matheson Holdings Limited [6.20%]
Thanks for your info. You are right! Bascially, base currency in USD is already not a good tracker for STI. By the way, how can I buy these trackers? I tried buying from AMfraser but does not seem to work? How about via Philips securities, poems tradng platform?
ReplyDeleteSorry, I'm not too familiar with AMfraser. STI ETF is traded just like any regular stock. I guess Philips securities' POEMS should not have any problems.
Delete1. Nikko AM Singapore STI ETF (Symbol: G3B) [Lot Size: 100]
2. SPDR Straits Times Index ETF (Symbol: ES3) [Lot Size: 1,000]
This comment has been removed by the author.
ReplyDeleteHi Gideon,
DeleteThat would be great! I'm sure it will promote sharing and give our readers a chance to learn more about investing. I have added your site - you can see it under Investment (Singapore) section on the left.
Cheers!
Dear Just An Average Guy,
ReplyDeleteThanks for putting up a great site. Quick check, is there any way to trade US or EU ETFs from Singapore? Thanks.
Hi,
DeleteOf course you can trade US ETFs from Singapore =)
As far as I know, US ETFs are listed on stock exchanges, and can be traded like regular stocks/shares. For example, my Standard Chartered account has access to VT (VANGUARD TOTAL WORLD STOCK ETF) on the NYSE (New York Stock Exchange).
Hi there. I'm a beginner to fund investing.
ReplyDeleteHow do I purchase the Nikko AM Singapore STI ETF, apart from the OCBC BCIP. Can I purchase it like any other shares on the SGX? Since the lot size is 100, if the price is say $3, means 1 lot = $300?
Many thanks.
Hi,
DeleteNikko AM Singapore STI ETF is traded like regular shares on SGX - look for symbol G3B. And yes, one lot is about $306 at today's prices.
Cheers!
Hi there,
ReplyDeleteThanks for creating this web.
I found something about the dividend for both Nikko and SPDR ETF.
Nikko Year 2012:
Oct:0.035
May:0.03
Total:0.065
SPDR Year 2012:
Aug:0.04
Feb:0.055
Total:0.095
There is a difference of 31% for the dividends distributed.
Can I say that it is better to do SPDR if I can afford the 1000lot(SGD$3300~)
Based on the available data, I would be inclined to agree with you. SPDR seems to enjoy cost savings and better efficiency due to their larger fund size. I believe fund management fees are paid out of dividends, and the remainder is then distributed to investors. If I can afford it, I would go with SPDR as well.
Delete