facebookI recently found that DBS invest-saver (RSP) now offer REIT ETF. (Nikko AM-StraitsTrading Asia ex Japan REIT ETF ) is it wiser to go for the REIT ETF or the STI ETF ? - Seedly

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Anonymous

27 Feb 2020

Stocks

I recently found that DBS invest-saver (RSP) now offer REIT ETF. (Nikko AM-StraitsTrading Asia ex Japan REIT ETF ) is it wiser to go for the REIT ETF or the STI ETF ?

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?

https://www.dbs.com.sg/personal/investments/oth...

Discussion (9)

What are your thoughts?

Hariz Arthur Maloy

Hariz Arthur Maloy

19 Dec 2019

Level 15·Independent Financial Advisor at Promiseland Independent

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.

Alex Chua

Alex Chua

27 Feb 2020

Level 9·Seedly student Ambassador 2020/21 at Seedly

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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