Friday, October 11, 2013

Nikko AM STI ETF Highest Dividend Yet

Based on the latest information from SGX.com, the upcoming dividend payout from Nikko AM STI ETF (yes, they pay dividends if you didn't know) is the highest ever. Looking at historical data, Nikko AM STI ETF has traditionally lagged behind SPDR STI ETF when it comes to dividend payouts.

Nikko AM STI ETF
October 2013 - $0.045
May 2013 - $0.035
October 2012 - $0.035
May 2012 - $0.030

SPDR STI ETF
August 2013 - $0.045
February 2013 - $0.040
August 2012 - $0.040
February 2012 - $0.055

If you have been monitoring Nikko AM STI ETF prices, you might find it interesting that on Ex-date (Thursday, 10-Oct-2013), the price promptly dipped by the dividend amount to $3.18 together with a massive volume of 1,219,800 shares changing hands. This is considered a huge deviation from the norm because the daily average volume (past 3 months) is only 79,000 shares.

Happy Indexing!

2 comments:

  1. Hello, I was just wondering when we buy shares from nikko am sti etf, are we buying limited pool of shares, or are new shares being created?

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    Replies
    1. Hi,

      It is my understanding that we (retail investors) are simply trading limited pool of shares i.e. existing units in the Fund (in board lots of 100 units). "New shares" require in excess of 100,000 units.

      You may refer to http://www.nikkoam.com.sg/etf/sti for more information.

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