facebookIShares Core MSCI AC Asia ex Japan Index ETF vs Sti ETF? - Seedly

Anonymous

14 Mar 2020

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Stocks

IShares Core MSCI AC Asia ex Japan Index ETF vs Sti ETF?

IShares Core MSCI AC Asia ex Japan Index ETF vs Sti ETF

For a Singaporean looking for long term investment, is the ishares core msci ac asia ex japan index etf a better fit than sti? It has exposure to more holdings throughout asia.

Was thinking of selling my useless sti to replace this

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Elijah Lee

14 Mar 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Haha "Useless sti" you made me smile.

STI is rather stagnant compared to other markets such as US or A/P in general. I have never understood the allure of the STI ETF to others, but to each his own. A/P region will still continue to grow in decades to come, whereas Singapore as a rather mature economy, will be somewhat sluggish. I will say that it is a rather attractive market for dividend players however, so for long term capital growth, go A/P or global.

Ultimately, since you have mentioned you are looking for long term, I will presume you are looking for capital gains. So yes, look for opportunities in the A/P region via ETFs or UTs. You will also be more diversified and reduce single country risk.

Yes, asia etf more diversified, relatively high total expense ratio (TER = 0.68% per year).

STI lagged longterm now, for Singapore exposure possibly S-REIT ETFs the better choice

via Lion Phillip S-REIT ETF.

here a chart since inception (versus STI and SP500, autoupdating) of
IShares Core MSCI AC Asia ex Japan Index ETF
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