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?
Neither: Both are highly concentrated in terms of exposure and i doubt will offer enough diversification. If you'd prefer to automate your investments, you may want to consider a robo-advisor instead
27 Feb 2020
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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.
Depends on yr portfolio. If u alr have investment in pty alr, then maybe u can go for STI. Otherwise REITS can b a good option especially S REITS.
Both sti etf and reit etf invest in different things. Therefore, it depends on what you are looking for. STI etf invest in the top 30 companies in singapore while the reit etf invest in only reits.
Maybe the Lion Philipp S-REIT ETF is the best choice, even if not (yet) included in your RSP options...
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