facebookHi, currently I'm investing $500 into STI ETF and $400 into StashAway (22% risk) per month. Looking into DCA into S&P 500 ETF, would that be a good strategy since I'm currently a beginner investor? - Seedly
Seedly logo
Seedly logo
 

Advertisement

Anonymous

29 Nov 2020

Hi, currently I'm investing $500 into STI ETF and $400 into StashAway (22% risk) per month. Looking into DCA into S&P 500 ETF, would that be a good strategy since I'm currently a beginner investor?

Is a portfolio of STI ETF, StashAway and S&P 500 ETF a good investing strategy for a beginner?

5

    Discussion (5)

    What are your thoughts?

    Andy Chan

    Andy Chan

    29 Nov 2020

    Level 10·Associate Software Engineer at GovTech

    Hello,

    Investing in the STI ETF isn't necessarily bad. Just take note that the STI ETF is more for dividend investing. i.e. You can expect tax-free dividends from the ETF, but don't expect your investment value to appreciate as much as the S&P500 ETF.

    It is also probably a more cost-efficient way to invest in the local market. Buying individual stocks would cost more as you'll incur flat fees from buying through the brokerages.

    For the most part, I would say your strategy isn't bad.

    • You have the STI ETF denominated in SGD that serves as a hedge against currency risk.

    • You have investments in a globally diversified portfolio for growth.

    If you're unsatisfied with the performance of the STI ETF, you can consider:

    • Allocating more to StashAway

    • Purchasing SG bonds instead and increasing your risk in StashAway to allocate a higher % to equities.

    Of course, the above are just suggestions, do your due diligence as well.

    Reply

    Save

    Share

      Should NOT buy STI index, coz is contain some bad apples in it. Just buy the 3 local banks. It make up of almost 40% of index. Sg stocks can DCA, coz the price is so stagnent compare to US.

      S&P500 would propose periodically 1 lump sum to invest. Because every few month market will have some huge correction.

      Reply

      Save

      Share

        View 1 replies

        Don't waste time and money on sti, super terrible index. focus on stashaway or consider syfe100...

        Read 3 other comments with a Seedly account

        You will also enjoy exclusive benefits and get access to members only features.

        Continue with Facebook
        Sign in with Apple

        Sign up or login with an email here

        Write your thoughts

        Advertisement