facebook(ETF Discussion) SGX: SPDR STI ETF (SGX: ES3)? - Seedly
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Anonymous

08 Aug 2020

General Investing

(ETF Discussion) SGX: SPDR STI ETF (SGX: ES3)?

Discuss anything about this ETF and if you would buy or sell this ETF. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment.

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      Discussion (7)

      What are your thoughts?

      I will avoid STI etf. STI has been growing extremely slowly for past few years. Additionally, banks take up a huge percentage of the ETF. I am not bullish on Singapore banks as MAS is issuing more digital bank license. The banking industry in Singapore will have many new players and it is going to be more competitive.

      A ETF tracking the world index will be more diversified and likely to perform better than STI etf in the long term.

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          Lim Qin Da

          Lim Qin Da

          23 Jul 2020

          Level 8·Business Administration & Analytics at National University of Singapore

          SPDR STI ETF is managed by State Street Global Advisors Singapore Limited, a subsidiary of the third-largest asset manager in the world.

          The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the Straits Times Index. The Straits Times Index is maintained by FTSE International Limited and represents the performance of the top 30 eligible companies. The Index constituents are reviewed semiannually in March and September and are diversified across all sectors.

          Information accurate as of 22 July 2020.

          Fund Details

          Inception Date

          • 4 November 2002

          Base Currency

          • SGD

          Fund Size

          • SGD 1,113.91 million (As of July 2020)

          Total Expense Ratio

          • 0.30%

          Distribution Frequency

          • Semi-Annual

          1-Year Annualised Tracking Error

          • 0.1508%

          Performance

          Fund Holdings

          The SPDR STI ETF is heavily weighted with financials, with DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank account for 37.63% of the ETF.

          Sector Allocation

          In terms of industry allocation, financials take up a whopping 61.75% of the ETF, followed by industrials, and telecommunications.

          Investors

          The SPDR STI ETF provides immediate exposure to the top 30 companies in Singapore, and it is great for beginners who are starting out to invest but are not willing to take the risk of overseas investment. However, it is heavily weighted on financials, which is an issue if you are looking diversification. Furthermore, historical performance has shown that the STI has underperformed other regional or global indexes, and hence this is another thing that investors should consider before putting their money into the SPDR STI ETF.

          Another ETF that tracks the STI is the Nikko AM STI ETF (SGX: G3B).

          References were made to SPDR STI ETF Fact Sheet. Click here to read more!

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              I'll only recommend this ETF if you are starting out and don't want to spend time reading financial ...

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