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STI ETF

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When will be the next STI ETF dividend payout date in 2021?
FYI, they did not missed dividend payout as what YJ says. Wrong information. People should really stop taking financial information and advice from forums etc. There is no regulation or professionalism in place. Anyone can just freely give their opinions without any responsibility. No qualifications or whatsoever required. !
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0

For those vested in ETFs, do you DCA forever or have a limit of 12, 24 or 36 months for DCA? I think 12 months is a tad short for averaging, but what about 36 months? Enough to ride out the storm?
Z

ZY

Level 6. Master

Answered on 09 Dec 2020

My ETF DCAs serves 2 purposes: - my retirement - my son's University fees (if he wants to go overseas, and he's only 1 year old this year) Will continue to DCA until both above are reached or until something unexpected occurs (loss of income)

0

Is it correct that I should only sell my STI ETF (with DBS RSP) when I need the cash and not when the market slumps?
Yes correct or another reason is if you lose conviction and find a better alternative, then that's when u should switch. For myself I switched from super terrible index (STI) to arkk etf and never turned back again, no regrets

0

Why did STI ETF surge on 8 Jan 2021?
Maybe covid vaccine news, don't think it has to do with US.

1

I am a beginner planning to invest a starting amount of 2k instead of leaving it in a bank account, I am also able to set aside about $100 every month. My question is go for STI ETF or Robo-Advisor?
Hi Melvin, it depends on your investment objectives really. If you are looking for income, the STI ETF has a historical distribution yield of 4% (source: https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3), which is impressive amid the low interest rate environment. The STI is not that bad after all and I feel investors are seriously overlooking it. I penned my thoughts here: https://blog.seedly.sg/investors-overlooking-straits-times-index/ However, if you feel there's better growth with a US index (or other indices) and you don't need the income for now, going the robo path might be better.

0

I've been investing $200 monthly RSP with DBS for STI-ETF since Nov 2018, a total of $4400. But my account now only has $3750. Should i continue the RSP or put my $200/mth elsewhere?
Chris

Chris

Level 6. Master

Answered 1w ago

Personally, I don't think the STI is a good investment, especially if capital appreciation and wealth accumulation is your main goal. If you're still young and not close to retirement, I would advise considering a world index ETF, such as IWDA, or an S&P 500 ETF like CSPX instead to capitalise on higher returns of said ETFs. You can check out a post I wrote about some of these ETFs here!

0

Should I sell away my STI ETF and when should I sell? Is a <20% loss okay?
Chris

Chris

Level 6. Master

Updated 1w ago

The advice I tend to give regarding cutting losses is generally that, if you have a better investment idea to put your money in, it is not wrong to cut your loss and move to another investment. So right now, what I would do is to compare your expectations for the STI in the next few months to the next investment that you'll likely shift your funds to if you were to sell off your STI ETF investment. If the prospects on the other investment looks better, go ahead and shift it over. There is no shame in cutting a loss. Personally, I am not vested in the STI.

0

Do you invest in the STI? Singapore's market is very niche and that will also mean it can be risky to invest in Singapore stocks. Would you encourage people to buy Singapore stocks?
Chris

Chris

Level 6. Master

Answered 2w ago

Personally, I don't invest in the STI for a few reasons, let me list them out and see if you agree or disagree with me. There are no right or wrong answers, just perhaps a sharing from my perspective: STI is strongly lacking in tech options Tech is a rapidly growing sector, especially with developments in so many subsectors of tech. From cloud computing to artificial intelligence to semiconductors to blockchain, tech is a fast growing space and in my honest opinion, we’re just getting started. With the STI not consisting of any tech options, this will reduce the ability for the STI to capitalise on the growth of tech space in the decade to come. STI is overweight on Financials In the STI, we can see that the bulk of the companies fall into the Financials sector. This includes the banks as well as REITs that comprise the STI. The performance of financials are heavily affected by macroeconomic factors such as interest rates, monetary policy and tax policies. This concentration causes the STI to be much more susceptible to sector based shocks. STI is not fully representative of Singapore's economy A lot of Singaporeans invest in the STI because they believe that Singpaore will do well in the years to come. However, the STI is not representative of the Singapore economy because of this concentration. The STI’s combined market capitalisation is $288 billion while the entire Singapore Stock Exchange (i.e. all the listed companies on the SGX) are valued at $733 billion. This means that the STI only covers about 39.29% of the market capitalisation of all the companies on the SGX. Compared to the S&P 500, which represents around 87.18% of the entire US stock market’s market capitalisation. As such, investing into the STI poses a concentration risk even within the Singapore market. STI is focused on Dividends While this itself is not a bad thing, the focus on dividends further shows a lack in growth opportunities for the companies in the STI. Dividends are usually paid out to shareholders because the management cannot find a better place to use the money that the company has on hand. Hence, the high dividend yields of the STI is indicative of lacking growth opportunities for the STI's big players. What do I recommend? Now, this is not to say that there are no good SGX stocks. There are, but you need to be discerning with them. iFast and AEM are that have performed exceptionally well in the past years. However, if you're looking for a more passive approach, consider an S&P 500 ETF such as CSPX or a global index ETF such as IWDA instead for your wealth accumulation!

0

Do you think it's myopic to just be investing in Singapore and not other countries like US, even though I have a contrarian view that the STI is good?
Chris

Chris

Level 6. Master

Answered 2w ago

Personally, I don't invest in the STI for a few reasons, let me list them out and see if you agree or disagree with me. There are no right or wrong answers, just perhaps a sharing from another perspective: STI is strongly lacking in tech options Tech is a rapidly growing sector, especially with developments in so many subsectors of tech. From cloud computing to artificial intelligence to semiconductors to blockchain, tech is a fast growing space and in my honest opinion, we’re just getting started. With the STI not consisting of any tech options, this will reduce the ability for the STI to capitalise on the growth of tech space in the decade to come. STI is overweight on Financials In the STI, we can see that the bulk of the companies fall into the Financials sector. This includes the banks as well as REITs that comprise the STI. The performance of financials are heavily affected by macroeconomic factors such as interest rates, monetary policy and tax policies. This concentration causes the STI to be much more susceptible to sector based shocks. STI is not fully representative of Singapore's economy A lot of Singaporeans invest in the STI because they believe that Singpaore will do well in the years to come. However, the STI is not representative of the Singapore economy because of this concentration. The STI’s combined market capitalisation is $288 billion while the entire Singapore Stock Exchange (i.e. all the listed companies on the SGX) are valued at $733 billion. This means that the STI only covers about 39.29% of the market capitalisation of all the companies on the SGX. Compared to the S&P 500, which represents around 87.18% of the entire US stock market’s market capitalisation. As such, investing into the STI poses a concentration risk even within the Singapore market. STI is focused on Dividends While this itself is not a bad thing, the focus on dividends further shows a lack in growth opportunities for the companies in the STI. Dividends are usually paid out to shareholders because the management cannot find a better place to use the money that the company has on hand. Hence, the high dividend yields of the STI is indicative of lacking growth opportunities for the STI's big players. All of that said and done, I think it is ok to still invest in the STI (at the right time), but it might not be a good choice to not even consider diversifying into other economies through say, global index ETFs such as IWDA or S&P 500 ETFs such as CSPX.

0

A bit confused, how does Keppel Corp breaking out of a base formation at $4.60, indicating an upside of at least $5, help the STI which is at 2.69 today?
Chris

Chris

Level 6. Master

Answered 2w ago

Keppel Corp makes up 3.3% of the STI. This means that if everything else doens't move and Keppel Corp is up 10%, the STI should theoretically move 3.3% 10% which means the STI will move up 0.33% if everything else doesn't move. Also, not entirely related to Keppel Corp, but you should not be investing money that you need in the short term as the market can experience significant short term volatility.

0