27 Feb 2020
As I'm looking to automate my investment with RSP with DBS multiplier original I was looking at STI ETF but I recently saw that they offer REIT ETF now so which should I go for?
You can't compare property to businesses, they're different asset classes.
You want to build a diversified portfolio of different asset classes, in different geographies, and industries.
So for your question, it's not one or the other, but how they fit in your overall portfolio.
Both are different asset class so both have different risk involved. Choose based on your outlook and your preference
What are the differences:
STI : tracks singapore growth progress. If you are confident in SG growth, DCA it
REIT ETF : A portfolio of reits in Asia (excluding Japan). it tracks the progress of reits performance in the Asia region. It is more diversified than STI because it covers more countries. Reits can be seen as more stable as the profit came from rental income(in which pricing has been confirmed due to lease agreement).
REIT ETF could be seen as a dividend income etf while STI is like growth etf
Personally, I would choose neither of them.
Cost: cheaper to DCA STI
Returns: cost is compounded from buying reit etf. I could buy a good REIT with possible higher returns.
Neither: Both are highly concentrated in terms of exposure and i doubt will offer enough diversifica...
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