Nikko AM STI ETF Enhances Index Tracking Precision

The Nikko AM STI ETF is now tracking the Straits Times Index on a total return basis rather than a price return basis. The investor experience will remain the same as dividends continue to be distributed on a semi-annual basis.

The change will provide a better reflection of how the fund manager is managing the portfolio and thereby imply better tracking precision.

Dividends are an important aspect of investing. Stock and ETF investors can reinvest dividends in order to earn compounded returns or bank their dividends as an additional source of income.

Over the ten year period ending 2013, dividends provided approximately one-third of the STI’s total returns which amounted to approximately 9% on an average annualised basis.

Read more here - SGX.com