facebookI'm 23 and in my penultimate year. I want to earn passive income by investing in ETFs through DBS Invest-Saver RSP. Which out of the 4 ETFs available will give the best dividends? - Seedly

Advertisement

Anonymous

05 Aug 2020

General Investing

I'm 23 and in my penultimate year. I want to earn passive income by investing in ETFs through DBS Invest-Saver RSP. Which out of the 4 ETFs available will give the best dividends?

I'm planning to invest $1000/mth initially to take advantage of the low price now. After a few months, i will lower it to $150/mth

Discussion (3)

What are your thoughts?

The REIT is the only possible one but it is expensive to trade (0.82%).

The three others (STI, SG bonds) are really bad investments. Also it seems they have only these 4 ETFs because they want to lead the retail investor to buying from their 'extensive list' of unit trusts (=mutual funds). Because of their high annual fees and inferior performance of stock picking actively managed funds versus passive indexing, mutual funds are one of the worst traps retail investors could fall prey to.

The only thing you need maybe is something like an MSCI World ETF, MSCI ACWI ETF or SP500 ETF. Also, when You're young you're not dependent on dividend income. Better select accumulating instead of distributing ETFs.

What also to avoid, here:

https://seedly.sg/questions/what-is-your-genera...

Dont go for the DBS one, the options are super limit (and I am sorry, but STI ETF's return just won't cut it).

Instead, go for:

  1. FSM One RSP. They have more varieties of ETF to choose from, such as VOO, FTEC, CQQQ, etc

  2. Robo advisors such as StashAway, Syfe, EndowUs, kristal.Ai

JG

Joey Gaeth

26 Jul 2020

Level 6·BSc Economics at London School of Economics and Political Science

If you're a beginner investor and is going for DCA approach, i'd recommend using FSMOne RSP rather t...

Read 1 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